The household saving rate in the euro area fell to 14.2% in the second quarter of 2026, new data from Eurostat has revealed.
This is down from 14.4% in the first quarter, as household consumption increased faster than disposable income, the statistics body noted.
Household individual consumption expenditure rose by 1.3% quarter on quarter in the second quarter, compared with a 1.1% increase in gross disposable income.
Household investment rate
The household investment rate also declined during the quarter, falling from 8.4% to 8.3%. Gross fixed capital formation by households increased by 0.5%, compared with a 1.1% rise in gross disposable income.
Household investment largely consists of spending on the purchase and renovation of dwellings, according to Eurostat.
The data also showed an increase in the share of value added generated by non-financial businesses that went to remunerating capital. The business profit share rose from 38.4% in the first quarter to 39.0% in the second quarter.
Eurostat said the increase reflected gross value added rising by 2.0% during the quarter, while compensation of employees and other taxes less subsidies on production increased by 1.0%.
The investment rate of non-financial corporations also increased, rising from 22.5% to 22.7%. Business gross fixed capital formation increased by 2.9%, faster than gross value added.
The second-quarter increase in business investment followed a 2.4% decline in gross fixed capital formation in the first quarter. The business profit share had also fallen from 39.3% in the fourth quarter of 2025 to 38.4% in the first quarter of 2026 before recovering in the latest period.
Household disposable income
Elsewhere, household disposable income had increased by 0.7% in the first quarter before accelerating to 1.1% in the second quarter, Eurostat noted.
Household consumption growth, meanwhile, increased from 0.6% to 1.3% over the same period, the data showed. Read more here.
