The household saving rate in the euro area surged to 15.3% in the first quarter of 2024, up from 14.1% in the previous quarter. This marks the highest saving rate since the second quarter of 2021, according to seasonally adjusted data from Eurostat, the statistical office of the European Union.
Concurrently, the household investment rate slightly decreased to 9.5% from 9.6%, the lowest since the first quarter of 2021. The profit share of non-financial corporations in the euro area decreased to 39.5% in the first quarter of 2024, down from 40.3% in the previous quarter, the lowest since the second quarter of 2020. However, the business investment rate increased slightly from 22.0% to 22.3%.
These data are part of Eurostat's first release of seasonally adjusted quarterly European sector accounts.
The increase in the household saving rate is attributed to a 2.1% rise in gross disposable income, outpacing the 0.8% increase in consumption. Conversely, the slight decrease in the household investment rate reflects a 1.1% increase in gross fixed capital formation, which was lower than the rise in gross disposable income.
The drop in the profit share of businesses is due to a 1.4% increase in employee compensation and taxes less subsidies on production, which outpaced the 0.1% rise in gross value added. The business investment rate grew as gross fixed capital formation increased by 1.3%, again outpacing the 0.1% rise in gross value added.
Following recommendations for harmonized European revision policies for national accounts and balance of payments, EU countries will undertake a benchmark revision of their national accounts estimates in 2024. This revision aims to incorporate changes from the amended ESA 2010 regulation and new data sources, with revised data expected to be released by Eurostat between June and October 2024.
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