In the first quarter of 2011, compared with the fourth quarter of 2010, the business investment rate was almost unchanged in the euro area (EA17), while it decreased slightly in the EU27. In the euro area, the business profit share continued to recover as value added increased faster than wage costs.

Business investment rate still at low levels in both zones

In the first quarter of 2011, the gross investment rate of non-financial corporations was 19.9% in the EU27, compared with 20.1% in the fourth quarter of 2010.

In the euro area, the investment rate was 20.7% in the first quarter of 2011 compared with 20.6% in the previous quarter, as investment grew by 1.9% in nominal terms and value added by 1.2%. Stocks of materials, supplies and finished goods increased noticeably.

Business profit share increasing further in the euro area

In the EU27, the gross profit share of non-financial corporations was 38.0% in the first quarter of 2011 almost unchanged compared with the previous quarter (38.1%).

In the euro area, the profit share was 38.5% in the first quarter of 2011, compared with 38.3% in the fourth quarter of 2010. This increase was due to value added increasing faster (+1.2%) than compensation of employees (wages and social contributions) plus taxes less subsidies on production (+0.9%).