In the third quarter of 2009, in both the euro area (EA16) and the EU27, the seasonally adjusted household saving rate decreased and the household investment rate was almost unchanged. In both zones, the business investment rate and the profit share grew.

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).

Household saving rate down for the first time since first quarter 2008

In the third quarter of 2009, the seasonally adjusted gross saving rate of households was 13.7% in the EU27 compared with 14.2% in the second quarter of 2009. In the euro area, the household saving rate was 15.8% in the third quarter of 2009, compared with 16.2% in the previous quarter.

In the euro area, the decrease in the household saving rate was caused by real disposable income falling (-0.1%), while real final consumption expenditure grew (0.5%).

Household investment rate stabilises in both zones

In the EU27, the gross investment rate of households was 8.3% in the third quarter of 2009, compared with 8.2% in the second quarter of 2009. In the euro area, the household investment rate was 9.1% in the third quarter of 2009, compared with 9.0% in the previous quarter.

In the euro area, the slight increase in the household investment rate was due to gross fixed capital formation (investment, mostly in dwellings) growing faster in nominal terms (1.7%) than nominal disposable income (0.2%).

Business investment rate up for the first time since third quarter 2008

In the EU27, the gross investment rate of non-financial corporations was 21.1% in the third quarter of 2009, compared with 20.7% in the second quarter of 2009. In the euro area, the investment rate was 21.3% in the third quarter of 2009, compared with 20.7% in the previous quarter.

In the euro area, the increase in the gross investment rate of non-financial corporations was due to gross fixed capital formation (investment) growing faster (5.1%) than value added (2.4%). As for stocks, total inventories of materials, supplies and finished goods decreased for the third quarter in a row.

Business profit share up in both zones

In the EU27, the gross profit share of non-financial corporations was 37.2% in the third quarter of 2009, compared with 35.8% in the second quarter of 2009. In the euro area, the profit share was 37.7% in the third quarter of 2009, compared with 36.4% in the previous quarter.

In the euro area, the gross profit share of non-financial corporations increased due to value added growing faster (2.4%) than compensation of employees (wage costs) plus taxes less subsidies on production (0.4%).