In the fourth quarter of 2009, in both the euro area (EA16) and the EU27, the seasonally adjusted business investment rate fell compared with the previous quarter while the profit share grew. In the euro area, stocks decreased for the fourth quarter in a row.

These data come from a detailed set of quarterly European sector accounts released by Eurostat, the statistical office of the European Union, and the European Central Bank (ECB).

Business investment rate still falling in both zones

In the fourth quarter of 2009, the seasonally adjusted gross investment rate of non-financial corporations was 20.3% in the EU27, compared with 20.6% in the third quarter of 2009. In the euro area, the investment rate was 20.4% in the fourth quarter of 2009, compared with 20.7% in the previous quarter.

In the euro area, the gross investment rate of non-financial corporations decreased as gross fixed capital formation (investment) fell (-0.9%), while value added grew (+0.6%). Stocks of materials, supplies and finished goods decreased for the fourth quarter in a row.

Business profit share up in both zones

In the EU27, the gross profit share6 of non-financial corporations was 37.1% in the fourth quarter of 2009, compared with 36.9% in the third quarter of 2009. In the euro area, the profit share was 37.9% in the fourth quarter of 2009, compared with 37.5% in the previous quarter.

In the euro area, the gross profit share of non-financial corporations increased as value added grew (+0.6%), while compensation of employees (wage costs) plus taxes less subsidies on production remained unchanged.