Higher disposable incomes for households

In the second quarter of 2016, Dutch households had more to spend than in the same quarter last year. Real disposable income was up by 2.1 percent year-on-year. An upward trend has been recorded for over a year now, according to figures released by Statistics Netherlands (CBS).

Changes in real disposable household income
Changes in real disposable household income
 Series 0
2013 I-1.5
2013 II-1.1
2013 III-1.7
2013 IV-1.3
2014 I-0.7
2014 II0
2014 III0.2
2014 IV-0.5
2015 I0.4
2015 II1.3
2015 III2.6
2015 IV3.5
2016 I3
2016 II2.1

Higher incomes due to higher compensation of employees

Disposable income mainly rose on account of raised compensations for employees and higher revenues from manufacturing activities. Total employee compensation increased by 1.8 percent in the second quarter. Compared to one year previously, the number of employee jobs went up by 1.6 percent. The number of jobs rose most rapidly in the temporary agency sector and in job placement services. Wages per year of work also increased in the second quarter by 1.3 percent year-on-year. Self-employed saw their incomes rise by 4.7 percent year-on-year. Household incomes rose in spite of higher taxes and social security contributions.

Contribution to the change in disposable income
Contribution to the change in disposable income
 Income from production activitiesWages employeesNet incomes from personal capital and transfersTaxes and social contributionsSocial benefitsInflation
2014 I1.150.21-0.79-0.541.2-2.01
2014 II1.310.14-1.21-0.031.22-1.62
2014 III0.930.25-
2014 IV0.291.04-0.71-0.820.39-0.85
2015 I-0.031.410.02-1.580.63-0.19
2015 II0.091.640.33-1.480.520.09
2015 III0.321.640.74-1.050.670.09
2015 IV0.811.110.55-0.10.860.09
2016 I1.211.4500.070.56-0.56
2016 II1.111.870.058-0.680.348-0.75

Mortgage debt rising again

Total mortgage debt of all households combined came to 662 billion euros in the second quarter of 2016. This was 9.8 billion euros more than one year previously. Total mortgage debt had been declining for several years as relatively large amounts were redeemed and fewer new mortgages were taken out, but it has now been on the rise for five consecutive quarters. One major contributing factor is sustained improvement in the housing market. In the second quarter of 2016, nearly 24 percent more houses were sold than in the same period in 2015 and sale prices were on average 4.4 percent higher.

Balance of mortgages taken out and redeemed
Balance of mortgages taken out and redeemed
 Series 0
2010 I4.5
2010 II4.7
2010 III5
2010 IV3.7
2011 I3.2
2011 II3.9
2011 III3.4
2011 IV1.7
2012 I0.2
2012 II2.2
2012 III1.9
2012 IV-0.2
2013 I-4.4
2013 II-3.1
2013 III-2.5
2013 IV-6.6
2014 I-1.5
2014 II-0.7
2014 III-0.9
2014 IV-1.8
2015 I-0.3
2015 II0.6
2015 III2.8
2015 IV1.6
2016 I1.8
2016 II3.7