Household Sector

National Institute of Economic and Social Research ()

National Institute Economic Outlook, 2026, issue Summer, 38-41

Abstract: Real personal disposable income (RDPI) growth in 2026 is forecast to remain unchanged from 2025 at 1.0 per cent (Figure 25). Growth is supported by a smaller drag from effective taxes on income compared with 2025, which offsets weaker employment growth. Nominal earnings growth is expected to remain solid, albeit softer than in 2025, but real income growth is limited as inflation remains elevated. RDPI growth is expected to slow to 0.1 per cent in 2027, as weaker earnings growth and continued tax pressures weigh on household incomes.

JEL-codes: D14 E21 J21 (search for similar items in EconPapers)
Date: 2026
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