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Household Sector

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  • National Institute of Economic and Social Research

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.

Suggested Citation

  • National Institute of Economic and Social Research, 2026. "Household Sector," National Institute Economic Outlook, National Institute of Economic and Social Research, issue Summer, pages 38-41.
    • Handle: RePEc:nsr:niesre:i:summery:2026p:38-41
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    File URL: https://niesr.ac.uk/wp-content/uploads/2026/07/Economic-Outlook-Summer-2026.pdf?ver=bRIlAI8jRfszmPEN5DHs
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    More about this item

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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