In the first quarter of 2012, compared with the fourth quarter of 2011, the business investment rate remained nearly stable in the euro area and fell slightly in the EU27. In the euro area, the business profit share rose slightly, as wage costs remained stable while value added increased slightly.

Business investment rate down in the EU27, almost stable in the euro area

In the first quarter of 2012, the gross investment rate of non-financial corporations was 19.9% in the EU27, compared with 20.1% in the fourth quarter of 2011.

In the euro area, the investment rate was 20.6% in the first quarter of 2012, compared with 20.7% in the previous quarter, as investment decreased (-0.6%) while gross value added recorded a moderate increase (+0.2%). Total stocks (materials, supplies and finished goods) fell slightly for the second quarter in a row.

Business profit share up in the EU27, almost stable in the euro area

In the EU27, the gross profit share of non-financial corporations was 38.1% in the first quarter of 2012, compared with 37.8% in the fourth quarter of 2011.

In the euro area, the profit share was 38.3% in the first quarter of 2012 compared with 38.2% in the previous quarter, due to compensation of employees (wages and social contributions) plus taxes less subsidies on
production remaining stable while value added rose (+0.2%).