Household saving rate down to 13.7% in the euro area

The household saving rate in the euro area was at 13.7% in the second quarter of 2022, compared with 15.2% in the first quarter of 2022.

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 remained nearly stable at 10.1% in the second quarter of 2022.

In the second quarter of 2022, the profit share of businesses (non-financial corporations) decreased slightly from 40.0% to 39.8% in the euro area.

The business investment rate in the euro area remained stable at 23.9% in the second quarter of 2022. The peaks of the business investment rate observed in 2015Q2, 2017Q2, 2019Q2, 2019Q4 and 2020Q1 are related to large imports of intellectual property products reflecting globalisation effects.

Households

The decrease of households’ saving rate in the euro area is explained by consumption increasing by 3.5%, at a faster rate than households’ gross disposable income (+1.7%).

Household’s investment rate remained nearly stable in the euro area due to the growth of gross fixed capital formation and gross disposable income, by +1.1% and +1.7%, respectively.

Non-financial corporations

The slight decrease of business profit share in the euro area is explained by the increase of business gross value added at a slower rate (+2.0%) than compensation of employees (wages and social contributions) plus taxes less subsidies on production (+2.4%).

Business investment rate remained stable in the euro area as the growth rates of business gross fixed capital formation and gross value added were similar (+2.2% and +2.0% respectively).