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14/2009-30 January 2009 Sector Accounts: Third quarter of 2008 Household saving rate at 14.4% in the euro area and 10.7% in the EU27 Business investment rate at 23.5% in the euro area and 23.

This Eurostat News Release focuses on three key indicators: the household saving rate, and the investment rate and profit share of non-financial businesses.

1 14/ January 2009 Sector Accounts: Third quarter of 2008 Household saving rate at 14.4% in the euro area and 10.7% in the EU27 Business investment rate at 23.5% in the euro area and 23.6% in the EU27 Eurostat, the Statistical Office of the European Communities, and the European Central Bank (ECB) release a detailed set of quarterly European sector accounts 1. This Eurostat News Release focuses on three key indicators: the household saving rate, and the investment rate and profit share of non-financial businesses. Developments in the euro area are detailed in an annex. Household saving rate up in the euro area In the third quarter of 2008, the seasonally 2 gross saving rate 3 of households was 14.4% in the euro area 4 (EA15). It was 14.0% in the second quarter of In the EU27 5, the household saving rate was 10.7% in the third quarter of 2008, compared with 10.6% in the second quarter of % 14% 13% 12% Household saving rate (seasonally, %) Euro area EU27 Courthouse News Service 15% 14% 13% 12% 11% 11% 10% 10% 9% 9%

2 Business investment rate still growing in the euro area The investment rate 6 of non-financial corporations was 23.5% in the euro area in the third quarter of 2008 compared with 23.3% in the second quarter of In the EU27, the investment rate was 23.6% in the third quarter of It was also 23.6% in the second quarter of Investment rate of non-financial corporations (seasonally, %) 25% Euro area EU27 25% 24% 24% 23% 23% 22% 22% 21% 21% 20% 20% Business profit shares down in both zones In the third quarter of 2008, the profit share 7 of non-financial corporations was 38.4% in the euro area. It was 39.1% in the second quarter of In the EU27, the profit share was 38.1% in the third quarter of 2008 compared with 38.4% in the second quarter of Profit share of non-financial corporations (seasonally, %) 41% Euro area EU27 41% 40% 40% 39% 39% 38% 38% 37% 37% 36% 36%

3 Methodological information The compilation of the European sector accounts follows the European System of Accounts (ESA 95) and covers the period from the first quarter of 1999 to the third quarter of The European sector accounts are not a simple sum of the data of individual countries. There are six specific compilation steps: (1) conversion to euro, (2) estimation of missing countries, (3) incorporation of the European institutions, (4) estimation of the flows between the euro area / EU and third countries, (5) balancing of the accounts and (6) seasonal adjustment of key series. Due to the conversion to euro, the growth rates of EU aggregates may be affected by movements in exchange rates and should be viewed with caution. However, there is hardly any impact on ratios such as saving and investment rates or profit shares. For the time being, the publication is limited to the European aggregates: the EA15 and the EU27, i.e. no quarterly individual country data are published by Eurostat. The rest of the world accounts, as compiled by Member States, record transactions between the national economy and all non-resident units, including those in other EU Member States. To measure the external transactions of the euro area / EU, it is necessary to remove cross-border flows within the area concerned. Imbalances between intra-imports and intra-exports, called asymmetries, are then eliminated. Currently, intra-flows and resulting asymmetries are not removed in the other domains of national accounts of Eurostat. Therefore, European sector accounts are internally consistent but have discrepancies with other national accounts data. For detailed data and methodology, please see Eurostat's website at: and ECB's website at: Eurostat's website also includes detailed annual sector accounts by country and derived key indicators. Release and revision policy The quarterly News Releases are published four months after each quarter. The next Release will be issued on 30 April The whole time series are revised every quarter. Compared with News Release 153/2008 of 4 November 2008, the household saving rate for the second quarter of 2008 has been revised from 13.9% to 14.0% in the euro area and from 10.2% to 10.6% in the EU27. While the business investment rate remained unchanged in the euro area, it was revised from 23.9% to 23.6% in the EU27. The ECB and Eurostat are publishing integrated non-financial and financial accounts, including financial balance sheets, for the euro area. Eurostat is also publishing the non-financial accounts of the European Union. 1. Institutional sectors bring together economic units with broadly similar characteristics and behaviour, namely: households (including non-profit institutions serving households), non-financial corporations, financial corporations, government and the rest of the world. 2. Seasonal adjustment has been performed using the Tramo-Seats method. Euro area seasonally series are built up indirectly as the sum of seasonally components. On the contrary, as European Union series are affected by exchange rate movements, the EU ratios have been directly. 3. The gross saving rate of households is defined as gross saving divided by gross disposable income. The latter is for the change in the net equity of households in pension funds reserves. Gross saving is the part of the gross disposable income which is not spent as final consumption expenditure. Therefore, saving rates increase when gross disposable income grows at a higher rate than final consumption expenditure. 4. The euro area (EA15) consisted of 15 Member States up to 31 December 2008: Belgium, Germany, Ireland, Greece, Spain, France, Italy, Cyprus, Luxembourg, Malta, the Netherlands, Austria, Portugal, Slovenia and Finland plus the European Central Bank. From 1 January 2009, the euro area (EA16) also includes Slovakia. Data for EA16 will be published as of 30 July 2009 (first release of sector accounts for the first quarter of 2009). 5. The European Union (EU27) consists of 27 Member States: Belgium, Bulgaria, the Czech Republic, Denmark, Germany, Estonia, Ireland, Greece, Spain, France, Italy, Cyprus, Latvia, Lithuania, Luxembourg, Hungary, Malta, the Netherlands, Austria, Poland, Portugal, Romania, Slovenia, Slovakia, Finland, Sweden and the United Kingdom plus the European Central Bank and the EU institutions. 6. The gross investment rate of non-financial corporations is defined as gross fixed capital formation divided by gross value added. This ratio relates the investment of non-financial businesses in fixed assets (buildings, machinery etc.) to the value added created during the production process. The seasonally data published in this news release have been for one outlier found in national data, in the second quarter of The profit share of non-financial corporations is defined as gross operating surplus divided by gross value added. This profitability-type indicator shows the share of the value added created during the production process remunerating capital. It is the complement of the share of wage costs (plus net taxes on production) in value added. Issued by: Eurostat Press Office Tim ALLEN Tel: eurostat-pressoffice@ec.europa.eu Eurostat news releases on the Internet: For further information: Denis LEYTHIENNE Peeter LEETMAA Hervé RENNIÉ Tel: Tel: estat-sector-query@ec.europa.eu Selected Principal European Economic Indicators:

4 Euro area (EA15) Households Non-financial corporations Saving rate, % Investment rate*, % Profit share, % Investment rate, % * The investment rate of households is defined as their gross fixed capital formation (investment) divided by their gross disposable income ( for the change in net equity of households in pension funds reserves). Household investment mainly consists of the purchase and renovation of dwellings.

5 European Union (EU27) Households Non-financial corporations Saving rate, % Investment rate*, % Profit share, % Investment rate, % * The investment rate of households is defined as their gross fixed capital formation (investment) divided by their gross disposable income ( for the change in net equity of households in pension funds reserves). Household investment mainly consists of the purchase and renovation of dwellings.

6 4% ANNEX (euro area) Household saving rate in the euro area (EA15) Nominal growth of the components (seasonally, percentage change compared to the previous quarter) Gross disposable income (left scale) Final consumption expenditure (left scale) Saving rate (right scale) 16% 3% 15% 2% 14% 1% 13% 0% 12% -1% 11% In the third quarter of 2008, disposable income grew at a higher rate (+1.3%) than final consumption expenditure (+0.8%) leading to an increase in the household saving rate. Household investment rate in the euro area (EA15) Nominal growth of the components (seasonally, percentage change compared to the previous quarter) Gross disposable income (left scale) Gross fixed capital formation (left scale) Investment rate (right scale) 4% 3% 12% 11% 2% 10% 1% 9% 0% 8% -1% 7% In the third quarter of 2008, gross fixed capital formation (investment, mostly in dwellings) fell (-0.6%) while disposable income rose (+1.3%). This led to a decrease in the household investment rate, extending the downward trend that started in the beginning of Further details on household disposable income, final consumption expenditure and investment are provided in tables A.1 and A.2.

7 4% Investment rate of non-financial corporations in the euro area (EA15) Nominal growth of the components (seasonally, percentage change compared to the previous quarter) Gross value added (left scale) Gross fixed capital formation (left scale) Investment rate (right scale) 24% 3% 23% 2% 22% 1% 21% 0% 20% -1% 19% In the third quarter of 2008, gross fixed capital formation (investment) grew at a higher rate (+0.9%) than value added (+0.1%) which led to an increase in the investment rate of non-financial corporations. 4% Profit share of non-financial corporations in the euro area (EA15) Nominal growth of the components (seasonally, percentage change compared to the previous quarter) Gross value added (left scale) Compensation of employees and taxes less subsidies on production (left scale) Profit share (right scale) 41% 3% 40% 2% 39% 1% 38% 0% 37% -1% 36% The profit share of non-financial corporations decreased in the third quarter of 2008, as compensation of employees (wage costs) plus net taxes on production grew at a higher rate (+1.2%) than gross value added (+0.1%). Further details on the key indicators of non-financial corporations and their components are provided in table A.3.

8 Table A.1 Household gross disposable income and its components, final consumption expenditure and gross fixed capital formation, in the euro area (EA15) (millions of euro at current prices, seasonally ) Compensation of employees (received) Gross operating surplus and mixed income Gross disposable income Net property income and other current transfers Net social benefits* Taxes (-) Total* Final consumption expenditure Gross fixed capital formation * Including net adjustment for the change in net equity of households in pension funds reserves.

9 1999 Table A.2 Household gross disposable income and its components, final consumption expenditure and its deflator and gross fixed capital formation, in the euro area (EA15) (seasonally, percentage change compared to the previous quarter) Compensation of employees (received) Nominal growth of the components of gross disposable income Gross operating surplus and mixed income Net property income and other current transfers Net social benefits* Taxes (-) Contribution** of the components to nominal growth of gross disposable income Compensation of employees (received) Gross operating surplus and mixed income Net property income and other current transfers Net social benefits* Taxes Nominal growth of gross disposable income* Nominal growth of final consumption expenditure Growth of the deflator of final consumption expenditure*** : : : : : : : : : : : : : : * Including net adjustment for the change in net equity of households in pension funds reserves. ** The contribution of a component ("C") to the growth of an aggregate ("A") is equal to the product of the growth rate of this component by its weight in the aggregate at the previous period: ((C t -C t-1 )/C t-1 ) * (C t-1 /A t-1 ) or simply (C t -C t-1 )/A t-1. *** Deflator for the seasonally final consumption expenditure of households (including non-profit institutions serving households). Nominal growth of gross fixed capital formation

10 Table A.3 Main components of non-financial corporations' key indicators and their nominal growth, in the euro area (EA15) (seasonally ) Millions of euro at current prices % change compared to the previous quarter Gross value added Compensation of employees (paid) Other taxes less subsidies on production Gross operating surplus Gross fixed capital formation Gross value added Compensation of employees and other taxes less subsidies on production Total Of which Compensation of employees Gross operating surplus Gross fixed capital formation : : : : :

STAT/12/ October Household saving rate fell in the euro area and remained stable in the EU27. Household saving rate (seasonally adjusted)

STAT/12/ October Household saving rate fell in the euro area and remained stable in the EU27. Household saving rate (seasonally adjusted) STAT/12/152 30 October 2012 Quarterly Sector Accounts: second quarter of 2012 Household saving rate down to 12.9% in the euro area and stable at 11. in the EU27 Household real income per capita fell by