Euro zone household income ticks up after tax in Q1

FRANKFURT, July 30 (Reuters) - Household disposable income grew slightly in the euro zone in the first quarter of the year, boosted by government outlays, European Central Bank data showed on Thursday.

Household net disposable income -- income available to spend or save after taxes and social security -- grew 0.9 percent in January-March from the first quarter of 2008, after a 2.7 percent rise in the previous quarter, the ECB said in a report on the first quarter.
Disposable income is different to 'discretionary income', which also subtracts normal expenses like rent, utilities and other essentials.

The report also said, however, that households' overall wealth fell 10 percent in annual terms, hit by large falls in stock markets and other asset prices, and that they were spending less and saving more.

In the first quarter, the annual growth rate of net household savings rose to 28.4 percent from 19.8 percent in the previous quarter.

But the ECB said firms had suffered the brunt of the woes. Net income of non-financial corporations fell 23 percent in the first quarter, from a 10.9 percent drop in the final months of 2008.

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