Euro area household saving rate increased to 14.6% in Q4 2023 from 13.9% in Q3 2023; household investment rate decreased to 9.7% from 9.8%: Eurostat

LUXEMBOURG , April 9, 2024 (press release) –

Business profit share decreases to 40.3%

Overview
The household saving rate in the euro area was at 14.6% in the fourth quarter of 2023 (compared with 13.9% in the third quarter of 2023).

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 9.8% to 9.7% in the fourth quarter of 2023.

In the fourth quarter of 2023, the profit share of businesses (non-financial corporations) decreased from 40.5% to 40.3% in the euro area. It the lowest value since 2020Q3.

The business investment rate in the euro area slightly decreased from 22.6% to 22.5% in the fourth 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 1.2%, at a faster rate than consumption (+0.4%).

Household investment rate and its components
Household’s investment rate decreased in the euro area, as gross fixed capital formation decreased by 0.3%, while gross disposable income increased by 1.2%.

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 (+1.2%).

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