The household savings rate stood at 15.1% in the euro area in the third quarter of last year, new data from Eurostat has found.
This compares to a 15.4% household savings rate in the second quarter, which indicates that individual consumption is increasing at a faster rate than gross disposable income.
In the third quarter, individual consumption expenditure rose by 0.9%, while gross disposable income increased by 0.6%.
Household investment rate
Elsewhere, the household investment rate in the euro area remained stable at 9.0% in the third quarter, with gross fixed capital formation growing at a similar pace to disposable income – at rates of +0.7% and +0.6% respectively.
Investment by households increased by 0.7% quarter on quarter, broadly matching the income trend. Household investment continues to be mainly associated with the purchase and renovation of dwellings, according to Eurostat.
Business performance
Eurostat’s data also assessed the profit share of businesses (non-financial corporations) in the euro area, which was down to 39.1% in the third quarter, compared to 39.2% the previous quarter. This reflects compensation of employees and taxes on production increasing marginally faster than gross value added, it noted.
The business investment rate in the euro area rose to 21.7%, compared to 21.6% in the previous quarter, with business gross fixed capital formation growing by 1.6%; a faster pace than the the 1.2% increase in gross value added.
Eurostat noted that earlier peaks in business investment rates – in Q2 2017, Q2 2019, Q4 2019 and Q1 2020 – were linked to large imports of intellectual property products, reflecting globalisation effects. Read more here.
Key Indicators and Growth Rates of Selected Transactions of the Euro Area (Seasonally Adjusted)
| Indicator | 2023 Q4 | 2024 Q1 | 2024 Q2 | 2024 Q3 | 2024 Q4 | 2025 Q1 | 2025 Q2 | 2025 Q3 |
|---|---|---|---|---|---|---|---|---|
| Households | ||||||||
| Saving rate (%) | 14.8 | 15.2 | 15.4 | 15.2 | 15.0 | 15.2 | 15.4 | 15.1 |
| Investment rate (%) | 9.5 | 9.3 | 9.1 | 9.0 | 9.0 | 9.0 | 9.0 | 9.0 |
| Gross disposable income, q-o-q change (%) | 1.4 | 1.6 | 0.7 | 0.9 | 0.6 | 0.9 | 0.9 | 0.6 |
| Individual consumption expenditure, q-o-q change (%) | 0.7 | 1.2 | 0.4 | 1.1 | 0.9 | 0.6 | 0.7 | 0.9 |
| Gross fixed capital formation, q-o-q change (%) | -1.3 | -0.5 | -1.1 | -0.7 | 0.7 | 1.1 | 1.2 | 0.7 |
| Non-financial corporations | ||||||||
| Profit share (%) | 40.7 | 40.0 | 39.7 | 39.6 | 39.4 | 39.4 | 39.2 | 39.1 |
| Investment rate (%) | 21.9 | 21.8 | 21.2 | 21.5 | 21.2 | 22.1 | 21.6 | 21.7 |
| Gross value added, q-o-q change (%) | 0.8 | 0.2 | 0.7 | 1.2 | 0.8 | 1.0 | 0.8 | 1.2 |
| Compensation of employees & other taxes less subsidies, q-o-q change (%) | 1.4 | 1.4 | 1.2 | 1.3 | 1.2 | 1.0 | 1.2 | 1.2 |
| Gross fixed capital formation, q-o-q change (%) | -0.3 | -0.1 | -2.1 | 2.8 | -0.6 | 5.0 | -1.3 | 1.6 |
Note: Gross disposable income is adjusted for the change in the net equity of households in pension fund reserves. Source dataset: nasq_10_ki.
