January 12, 2023
The household saving rate in the euro area was at 13.2% in the third quarter of 2022 (compared with 13.4% in the second quarter of 2022). It is the sixth consecutive quarterly decrease, from 21.5% in the first quarter of 2021. These data come from a first release of seasonally adjusted quarterly European sector accounts from Eurostat, the statistical office of the European Union.
At the same time, the household investment rate in the euro area decreased from 10.1% to 9.9% in the third quarter of 2022.
In the third quarter of 2022, the profit share of businesses (non-financial corporations) increased slightly from 39.7% to 39.8% in the euro area.
The business investment rate in the euro area increased from 24.1% to 25.5% in the third quarter of 2022. This peak, as well as the peaks in 2015Q2, 2017Q2, 2019Q2, 2019Q4 and 2020Q1, is related to large imports of intellectual property products reflecting globalisation effects.
The decrease of households’ saving rate in the euro area is explained by consumption increasing by 2.5%, at a faster rate than households’ gross disposable income (+2.3%).
Household’s investment rate decreased in the euro area, as gross fixed capital formation increased at a slower rate than gross disposable income (+0.6% and +2.3%, respectively).
The slight increase of business profit share in the euro area is explained by the increase of business gross value added at a faster rate (+1.8%) than compensation of employees (wages and social contributions) plus taxes less subsidies on production (+1.6%).
Business investment rate increased in the euro area as business gross fixed capital formation grew at a much faster rate (+8.0%) than gross value added (+1.8%).
Source: Eurostat
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