In the first quarter of 2011, the gross saving rate of households was 11.6% in the EU27, compared with 11.2% in the fourth quarter of 2010. In the euro area5, the household saving rate was 13.3% in the first quarter of 2011, the same as in the previous quarter.
Household final consumption decreasing in real terms in the euro area
In the euro area, the stable household saving rate was due to real final consumption expenditure decreasing at the same pace (-0.3%) as real disposable income. The latter fell due to prices increasing more (+1.0%) than nominal income (+0.7%).
The increase in household nominal disposable income (+0.7%) was mainly due to compensation of employees (wages and social contributions) which accounted for +0.6 percentage points (pp). Net property income and gross operating surplus / mixed income (of self-entrepreneurs) contributed +0.4 pp each, while taxes (-0.4 pp) and net social benefits (-0.3 pp) both had a negative impact.
Household investment rate still at low levels in both zones
In the EU27, the gross investment rate of households was 8.0% in the first quarter of 2011, compared with 8.1% in the previous quarter. In the euro area, the household investment rate was 8.9% in the first quarter of 2011, unchanged compared with the previous quarter.
In the euro area, the stable household investment rate was due to nominal disposable income growing at the same pace (+0.7%) as investment8 (gross fixed capital formation, mostly in dwellings).
