In the first quarter of 2012 compared with the fourth quarter of 2011, the household saving rate and the household investment rate remained almost stable in both the euro area (EA17) and the EU27. In the euro area, household disposable income increased by 0.2% in real terms, after falling by 0.5% in the previous quarter.

Household saving rate nearly stable in both zones

In the first quarter of 2012, the gross saving rate of households was 11.6% in the EU27, compared with 11.5% in the fourth quarter of 2011. In the euro area, the household saving rate was 13.3% in the first quarter of 2012, unchanged compared with the previous quarter.

Household real income and consumption up in the euro area

In the euro area, the household saving rate remained stable due to real final consumption expenditure increasing at the same pace (+0.2%) as real gross disposable income. The latter increased due to nominal income increasing more (+0.7%) than consumption prices (+0.5%).

The increase in household nominal disposable income (+0.7%) was the result of the positive contributions of net property income and other transfers (+0.5 pp), compensation of employees (+0.2 pp) and social benefits (+0.1 pp), while taxes and social contributions contributed negatively (-0.1 pp).

Household investment rate remained at low levels in both zones

In the EU27, the gross investment rate of households was 8.3% in the first quarter of 2012, compared with 8.4% in the previous quarter. It was 9.0% in the euro area, compared with 9.1% in the previous quarter.

In the euro area, the slight decrease of the investment rate was due to household investment (gross fixed capital formation, mostly in dwellings) falling (-0.6%) while nominal disposable income grew (+0.7%).