April 6, 2023
The household saving rate in the euro area was at 14.1% in the fourth quarter of 2022 (compared with 13.3% in the third quarter of 2022). This is the first quarterly increase after sixth consecutive decreases.
These data come from a first release of seasonally adjusted quarterly European sector accounts from Eurostat, the statistical office of the European Union.
In the fourth quarter of 2022, the profit share of businesses (non-financial corporations) increased from 40.4% to 42.0% in the euro area, the highest value since 2007.
The business investment rate in the euro area decreased from 25.4% to 23.5% in the fourth quarter of 2022. The peaks in 2015Q2, 2017Q2, 2019Q2, 2019Q4, 2020Q1 and 2022Q3 are related to large imports of intellectual property products reflecting globalisation effects.
Household saving rate and its components
The increase of households’ saving rate in the euro area is explained by gross disposable income increasing by 2.2%, at a faster rate than consumption (+1.3%).
Household investment rate and its components
Household’s investment rate increased in the euro area, as gross fixed capital formation decreased by 1.1% while gross disposable income increased by 2.2%.
Non-financial corporations profit share and its components
The increase of business profit share in the euro area is explained by the increase of business gross value added (+2.4%) while compensation of employees (wages and social contributions) plus taxes less subsidies on production decreased by 0.3%.
Non-financial corporations’ investment rate and its components
Business investment rate decreased in the euro area as business gross fixed capital formation decreased by 5.4% while gross value added increased by 2.4%.
Source: Eurostat
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither Karen Audit nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.
