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).
Household saving rate decreasing further in both zones
In the third quarter of 2010, the seasonally adjusted gross saving rate of households was 11.5% in the EU27, compared with 11.9% in the second quarter of 2010. In the euro area, the household saving rate was 13.8% in the third quarter of 2010, compared with 14.2% in the previous quarter, and has returned to its level of the third quarter of 2008, just before the financial crisis.
Household real final consumption resumed growth in the euro area
In the euro area, the drop in the household saving rate was due to an increase in real final consumption (+0.4%), while real disposable income decreased slightly (-0.1%). The latter decrease was mainly caused by a slower growth of compensation of employees (wages) (+0.2%) than of the prices of goods and services consumed by households (+0.5%).
Household nominal disposable income increased by only 0.4%, mainly due to a limited contribution of wages (+0.2 percentage points) compared with the period before the crisis. The contribution of net property income & other current transfers (+0.3 pp) was offset by the negative contribution of taxes (-0.3 pp).
Household investment rate stable in both zones at low level
In the EU27, the gross investment rate of households was 8.0% in the third quarter of 2010, as in the previous quarter. In the euro area, the household investment rate was 8.8% in the third quarter of 2010, also unchanged compared with the second quarter of 2010.
In the euro area, the stability of the household investment rate was triggered by investment (gross fixed capital formation, mostly in dwellings) growing at the same pace as the nominal disposable income (+0.4%). The growth in household investment has slowed down compared with the previous quarter (+1.1%).
