Key Highlights
In nominal terms, the personal disposable income (PDI) grew by 6.9% on a year-on-year basis in 2Q 2026, up from the 5.4% growth in 1Q 2026. The growth in PDI was supported by that of compensation of employees.
Personal saving expanded by 9.6% on a year-on-year basis in 2Q 2026, accelerating from the 6.6% growth in 1Q 2026. Personal saving rate decreased to 32.3% in 2Q 2026, down from 39.1% in 1Q 2026.
About the Personal Disposable Income and Personal Saving
The PDI measures the income (e.g., compensation of employees, self-employment income) of the personal sector (i.e., households and non-profit institutions serving households, after accounting for net investment income received (e.g., interest and dividends), net current transfers received (e.g., CPF top-ups and donations) and personal income tax paid.
Personal saving (i.e., the difference between personal disposable income and private consumption expenditure of goods and services) reflects the funds available for the purchase of financial assets, non-financial assets or repayment of debts. Hence, personal saving differs from the common perception of ‘saving’, which often refers to the amount of deposits in bank accounts.
The personal saving rate is defined as the share of personal saving out of personal disposable income.