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.