In the first quarter of 2009, in both the euro area (EA16) and the EU27, the seasonally adjusted household saving rate continued to increase and the household investment rate to decrease. In both zones, the fall in business investment rates and profit shares carried on.

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

Household saving rates up in both zones

In the first quarter of 2009, the seasonally adjusted gross saving rate of households was 13.8% in the EU27, compared with 12.3% in the fourth quarter of 2008. In the euro area, the household saving rate was 15.6% in the first quarter of 2009, compared with 14.9% in the previous quarter. In both zones, these were the highest rates recorded since the start of the series in the first quarter of 1999.

In the euro area, the household saving rate increased, since final consumption expenditure fell more (-1.1%) than disposable income (-0.2%).

Household investment rates down in both zones

In the EU27, the gross investment rate of households was 8.6% in the first quarter of 2009, compared with 8.8% in the fourth quarter of 2008. In the euro area, the household investment rate was 9.3% in the first quarter of 2009, the lowest rate recorded since the start of the series in the first quarter of 1999, compared with 9.8% in the previous quarter.

In the euro area, gross fixed capital formation (investment, mostly in dwellings) fell more steeply (-5.2%) than disposable income (-0.2%) which led to a decrease in the household investment rate.

Business investment rates down in both zones

In the EU27, the gross investment rate of non-financial corporations was 21.8% in the first quarter of 2009, compared with 22.8% in the fourth quarter of 2008. In the euro area, the investment rate was 21.7% in the first quarter of 2009, compared with 22.3% in the previous quarter.

In the euro area, the decrease in the gross investment rate of non-financial corporations was due to gross fixed capital formation (investment) falling more steeply (-7.0%) than value added (-4.4%).

Business profit shares down in both zones

In the EU27, the gross profit share of non-financial corporations was 36.7% in the first quarter of 2009, compared with 37.6% in the fourth quarter of 2008. In the euro area, the profit share was 36.8% in the first quarter of 2009, the lowest rate recorded since the start of the series in the first quarter of 1999, compared with 38.2% in the previous quarter.

In the euro area the gross profit share of non-financial corporations decreased, since compensation of employees (wage costs) plus taxes less subsidies on production fell less (-2.1%) than value added (-4.4%).