EU’s household saving rate & disposable income both down

In the third quarter of 2011 compared with the second quarter of 2011, the household saving rate decreased while the household investment rate remained almost unchanged in both the euro area (EA17) and the EU27. In the euro area, household disposable income fell by 0.4% in real terms, after a decrease of 0.1% in the previous quarter.

Household saving rate decreased in both zones

In the third quarter of 2011, the gross saving rate of households was 10.9% in the EU27, compared with 11.7% in the second quarter of 2011. In the euro area, the household saving rate was 13.3% in the third quarter of 2011 compared with 13.7% in the previous quarter.

Household real disposable income down in the euro area

In the euro area, the drop in the household saving rate was due to a decrease in real gross disposable income (-0.4%), while real final consumption expenditure recorded a small increase (+0.1%). Real income fell due to a decrease in nominal income (-0.1%) while prices rose (+0.4%).

Real growth of household gross disposable income and final consumption expenditure (euro area)

The slight decrease in household nominal disposable income (-0.1%) was the result of the negative contributions of net social benefits (-0.2 percentage point), taxes (-0.2 pp), and gross operating surplus / mixed income (-0.1 pp), while compensation of employees and net property income contributed positively (+0.3 pp and +0.2 pp respectively).

Household investment rate remained at low levels in both zones

In the EU27, the gross investment rate of households was 8.5% in the third quarter of 2011 compared with 8.4% in the previous quarter. In the euro area, the household investment rate was unchanged at 9.1% in the third quarter of 2011.

Household investment rate

In the euro area, household investment (gross fixed capital formation, mostly in dwellings) grew (+0.9%) while disposable income fell slightly (-0.1%).

These data are from a detailed set of seasonally adjusted quarterly European sector accounts released by Eurostat, the statistical office of the European Union, and the European Central Bank (ECB).

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