These data come from a detailed set of quarterly European sector accounts released by Eurostat, the statistical office of the European Union, and the European Central Bank (ECB).
Business investment rate still at low levels in both zones
In the third quarter of 2010, the seasonally adjusted gross investment rate of non-financial corporations was 20.0% in the EU27, compared with 19.9% in the second quarter of 2010. In the euro area, the investment rate was 20.5% in the third quarter of 2010, compared with 20.6% in the previous quarter.
In the euro area, the slight decrease in the gross investment rate of non-financial corporations was due to value added increasing faster (+0.7%) than gross fixed capital formation (investment) (+0.2%). In particular, investment showed a clear slow down compared with the previous quarter (+3.0%). Stocks of materials, supplies and finished goods increased for the second quarter in a row after five quarters of continuous destocking.
Business profit share continues to recover in both zones
In the EU27, the gross profit share of non-financial corporations was 38.0% in the third quarter of 2010, compared with 37.4% in the second quarter of 2010. In the euro area, the profit share was 38.0% in the third quarter of 2010, compared with 37.8% in the previous quarter.
In the euro area, the increase in gross profit share of non-financial corporations was due to value added increasing faster (+0.7%) than wage costs (compensation of employees) plus taxes less subsidies on production (+0.3%). Wage costs in particular grew more slowly than in the previous quarter (+1.1%).
