In the second 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 continued, though at a lower rate.

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 rate up in both zones

In the second quarter of 2009, the seasonally adjusted gross saving rate of households was 14.4% in the EU27 compared with 13.5% in the first quarter of 2009. In the euro area, the household saving rate was 16.5% in the second quarter of 2009, compared with 16.0% 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 increase in the household saving rate was due to disposable income growing faster (0.7%) than final consumption expenditure (0.2%).

Household investment rates down in both zones

In the EU27, the gross investment rate of households was 8.2% in the second quarter of 2009, compared with 8.5% in the first quarter of 2009. In the euro area, the household investment rate was 9.0% in the second quarter of 2009 compared with 9.3% in the previous quarter. In both zones, these were the lowest rates recorded since the start of the series in the first quarter of 1999.

In the euro area, the decrease in the household investment rate was caused by gross fixed capital formation (investment, mostly in dwellings) falling (-2.3%) while disposable income grew (0.7%).

Business investment rates down in both zones

In the EU27, the gross investment rate of non-financial corporations was 20.8% in the second quarter of 2009, compared with 21.4% in the first quarter of 2009. In the euro area, the investment rate was also 20.8% in the second quarter of 2009, compared with 21.4% in the previous quarter. In both zones, these were the lowest rates recorded since the start of the series in the first quarter of 1999.

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 (-2.8%) than value added (-0.2%).

Business profit shares down in both zones

In the EU27, the gross profit share of non-financial corporations was 35.9% in the second quarter of 2009, compared with 36.2% in the first quarter of 2009. In the euro area, the profit share was 36.4% in the second quarter of 2009 compared with 36.5% in the previous quarter. In both zones, these were the lowest rates recorded since the start of the series in the first quarter of 1999.

In the euro area, the gross profit share of non-financial corporations slightly decreased, since compensation of employees (wage costs) plus taxes less subsidies on production remained unchanged (0.0%) while value added fell (-0.2%).