Household consumption increased by 0.4% in the European Union in the second quarter of 2025, compared to the previous quarter, new data has shown. This compares to a 0.3% quarter-on-quarter decline in the previous quarter.
Household real income, meanwhile, increased by 0.6% in Q2, having remained stable in the first quarter of 2025, the Eurostat data showed.
In the euro area specifically, household consumption was up by 0.3% in Q2, while real income increased by 0.5%.
The growth in household real income in both the EU and euro area was mainly driven by the ‘positive contribution of compensation of employees and social benefits other than social transfers in kind,’ Eurostat noted.
At the same time, taxation and net social contributions had the biggest negative impact to income in both the EU and euro area.
The household savings rate rose by 0.3 percentage points in both the EU and euro area in the period, with savings rates increasing in nine member states, and declining in five.
Finland reported the biggest increase in household savings rate, with an increase of 2.2 percentage points, ahead of Belgium (+1.5 percentage points) and Sweden (1.3 percentage points).
The largest declines in household savings rate were seen in Denmark, Hungary and the Netherlands, all of which saw household savings decline by 0.6 percentage points.
Elsewhere, the household investment rate remained unchanged in the euro area and fell by 0.1 percentage points in the EU. The household investment rate rose in four EU member states, remained stable in three, and decreased in seven.
The biggest increase in household investment rate was recorded in Portugal and Spain, which saw an increase of 0.3 percentage points and 0.2 percentage points respectively, while the largest decrease was seen in Hungary (-0.7 percentage points).
The EU household savings rate for the second quarter of 2025 stood at 15.0%, while the investment rate stood at 8.5%. In the euro area specifically, the household savings rate was 15.5%, while the investment rate stood at 9.0%, Eurostat’s data showed. Read more here.
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