The profit share of businesses (non-financial corporations) in the euro area decreased from 40.5% to 40.3% in the fourth quarter of 2023.
This marks the lowest value since the third quarter of 2020.
The data come from a first release of seasonally adjusted quarterly European sector accounts from Eurostat, the statistical office of the European Union.
The household saving rate in the euro area was at 14.6% in the fourth quarter of 2023 (compared with 13.9% in the third quarter of 2023).
At the same time, the household investment rate in the euro area decreased from 9.8% to 9.7% in the fourth quarter of 2023.
The business investment rate in the euro area slightly decreased from 22.6% to 22.5% in the fourth quarter of 2023.
The peaks in 2015Q2, 2017Q2, 2019Q2, 2019Q4 and 2020Q1 are related to large imports of intellectual property products reflecting globalisation effects.
The increase of households’ saving rate in the euro area is explained by gross disposable income increasing by 1.2%, at a faster rate than consumption (+0.4%).
Household’s investment rate decreased in the euro area, as gross fixed capital formation decreased by 0.3%, while gross disposable income increased by 1.2%.
The decrease of business profit share in the euro area is explained by the increase of business compensation of employees (wages and social contributions) plus taxes less subsidies on production by 1.6%, at a faster rate than gross value added (+1.2%).
Business investment rate decreased in the euro area as business gross fixed capital formation increased by 0.7%, at a slower rate than gross value added (+1.2%).