In the third quarter of 2011, compared with the second quarter of 2011, the business investment rate rose in both the eurozone and the EU27 – according to the European quarterly sector accounts released by Eurostat, on 30 January. The rate settled at 20.5% in the EU27 (compared with 20.3% in the second quarter of 2011) and 21.1.% in the eurozone (compared with 20.8% in the previous quarter).

However, business profit share decreased in both areas. In the EU27, the business profit share in the value added of the non-financial businesses was 37.8% in the third quarter of 2011, compared with 38.1% in the previous quarter. In the eurozone, the business profit share was 38.5% compared with 38.8% in the previous quarter. This decrease was due to value added growing at a lower pace (+0.5%) than compensation of employees (wages and social contributions) plus taxes less subsidies on production (+1%).

As for the household saving rate (gross saving divided by gross disposable income), it decreased while the household investment rate remained almost unchanged in both the eurozone and the EU27 in the third quarter of 2011, compared with the second quarter of 2011. In the eurozone, household disposable income fell by 0.4% in real terms, after a decrease of 0.1% in the previous quarter. The gross household saving rate was 10.9% in the EU27 (compared with 11.7% in the second quarter of 2011) and 13.3% in the eurozone (compared with 13.7% in the previous quarter).

In the eurozone, the drop in the household saving rate was due to a decrease in real gross disposable income (-0.4%), while real final consumption expenditure recorded a small increase (+0.1%). Real income fell due to a decrease in nominal income (-0.1%) while prices rose (+0.4%).