Quarterly sector accounts, UK: October to December 2022

• The household saving ratio increased to 9.3% in Quarter 4 (Oct to Dec) 2022, from 8.9% in the previous quarter.

• Driving the 9.3% headline saving ratio is the rise in household income of £12.6 billion; this is itself driven by miscellaneous current transfers, which reached the highest level on record at £8.8 billion, increasing by £6.7 billion compared with the previous quarter.

• Real household disposable income increased by 1.3% this quarter after four consecutive quarters of negative growth; nominal gross disposable income saw strong growth at 3.6%, which is the largest quarter-on-quarter growth since Quarter 2 (Apr to June) 1999.

• The UK's borrowing position with the rest of the world as a percentage of gross domestic product (GDP) decreased to 0.6% in Quarter 4 2022 from 2.1% in Quarter 3 (July to Sept) 2022.

• Financial corporations increased their net lending position to 3.7% of GDP in Quarter 4 2022 from 1.9% of GDP in the previous quarter; this was driven by a fall in gross capital formation of £5.3 billion, which was driven by the acquisition less disposal of non-monetary gold.

• Non-financial corporations switched to net lending of 2.6% of GDP in Quarter 4 2022, following a net borrowing position of 0.1% in Quarter 3 2022; within non-financial corporations, private non-financial corporations saw a rise of £10.9 billion in their gross operating surplus, reflecting the energy price guarantee schemes.

• General government saw an increase in their net borrowing position to 7.0% of GDP in Quarter 4 2022, from net borrowing of 4.1% as a percentage of GDP in Quarter 3 2022.

Seasonal adjustment

All figures given in this bulletin are adjusted for seasonality unless the financial accounts are under discussion or otherwise stated. Seasonal adjustment removes seasonal or calendar effects from data to enable more meaningful comparisons over time.

Current price

Current price series are expressed in terms of the prices during the time period being estimated. These describe the prices recorded at the time of production or consumption and include the effect of price inflation over time.

Chained volume measures

Chained volume series (also known as real terms) have had the effects of inflation removed.

Gross disposable household income (GDHI) and real household disposable income (RHDI)

Gross disposable household income (GDHI) is the estimate of the total amount of income that households have available to either spend, save or invest including income received from wages (and the self-employed), social benefits, pensions and net property income (that is, earnings from interest on savings and dividends from shares) less taxes on income and wealth.

Adjusting GDHI to remove the effects of inflation gives real household disposable income (RHDI). This is a measure of the real purchasing power of households’ income, in terms of the physical quantity of goods and services they would be able to purchase if prices remained constant over time.

The household saving ratio explained

The saving ratio estimates the amount of money households have available to save as a percentage of their gross disposable income plus pension accumulations.

Net lending or borrowing

The net lending of a sector represents the surplus resources that a sector makes available to other sectors. Net borrowing represents their financing of a deficit from other sectors.

Net lending means a sector has money left over after its spending and investment in a given period, whereas net borrowing means it has spent and invested more than it received and has a need for financing, which may be covered by borrowing, issuing shares or bonds, or by drawing on reserves.

Revisions within this release

This bulletin includes new data for the latest available quarter, Quarter 4 (Oct to Dec) 2022, and revisions to data from Quarter 1 (Jan to Mar) 2022 to Quarter 3 (July to Sep) 2022. This bulletin follows the National Accounts Revisions Policy.

Understanding the sector and financial accounts

This release presents analysis on UK aggregate data for the main economic indicators and summary estimates from the institutional sectors of the UK economy that are presented in the UK Economic Accounts (UKEA) dataset, including:

• public corporations
• private non-financial corporations
• financial corporations
• households
• non-profit institutions serving households (NPISH)
• central government
• local government
• rest of the world

This release uses data from the UKEA and provides detailed estimates of national product, income and expenditure, UK sector, non-financial and financial accounts, and UK balance of payments. These accounts are the underlying data that produce a single estimate of gross domestic product (GDP) using income, production and expenditure data.

Quality and Methodology Information (QMI) report

The Quarterly sector accounts QMI report contains important information on:

• the strengths and limitations of the data and how they compare with related data
• uses and users of the data
• how the output was created
• the quality of the output including the accuracy of the data

System of National Accounts consultation

As part of an update to the System of National Accounts, the United Nations (UN) are in the process of consulting on several areas being considered for improvement. Previous and live consultations can be found on the UN Statistics Division website. If you would like to discuss any of these consultations with the Office for National Statistics (ONS), please contact us at sna.consultations@ons.gov.uk. Bodies outside the UK national statistical system are also free to respond to the consultations themselves.

Economic statistics governance after EU exit

Following the UK’s exit from the EU, new governance arrangements are being put in place that will support the adoption and implementation of high-quality standards for UK economic statistics. These governance arrangements will promote international comparability and add to the credibility and independence of the UK’s statistical system.

At the centre of this new governance framework will be the new National Statistician’s Committee for Advice on Standards for Economic Statistics (NSCASE). NSCASE will support the UK by ensuring its processes for influencing and adopting international statistical standards are world leading. The advice NSCASE provides to the National Statistician will span the full range of domains in economic statistics, including the national accounts, fiscal statistics, prices, trade and the balance of payments and labour market statistics.