The household saving rate in the euro area was at 14.8% in the second quarter of 2023, compared with 14.5% in the first quarter of 2023, according to a first release of seasonally adjusted quarterly European sector accounts from Eurostat, the statistical office of the European Union.
In the second quarter of 2023, the profit share of businesses (non-financial corporations) decreased to 40.8% in the euro area.
The business investment rate in the euro area decreased from 23.8% to 23.4% in the second quarter of 2023. The peaks in 2015Q2, 2017Q2, 2019Q2, 2019Q4 and 2020Q1 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 1.3%, at a slightly faster rate than consumption (+1.0%).
Household investment rate and its components
Household’s investment rate decreased in the euro area, as gross fixed capital formation decreased by 2.3%, the largest decrease since 2020Q2, while gross disposable income increased.
Non-financial corporations profit share and its components
The decrease of business profit share in the euro area is explained by the increase of business compensation of employees (wages and social contributions) plus taxes less subsidies on production by 1.6%, at a faster rate than gross value added (+1.1%).
Non-financial corporations’ investment rate and its components
Business investment rate decreased in the euro area as business gross fixed capital formation decreased by 0.4%, while gross value added increased by 1.1%.
