European Household Saving Stable In Q3

Household income remained stable in Europe in the third quarter of 2012 with the gross saving rate of households at 11.2% (compared with 11.1% in Q2) in the EU27 and 13% (12.9%) in the euro area.

The gross investment rate of households was 8% (8.1%) in the EU27 and 8.9% (8.9%) in the euro area. In nominal terms, the euro area household income increased by 0.3% and consumption by 0.2% while investment fell by 0.3%. Household income per capita fell by 0.3% as nominal income per capita increased by 0.2% but prices increased by 0.5%. Household consumption per capita decreased by 0.4%.

Household Saving Up On Last Quarter

The quarterly national accounts version of GDP show that household saving increased from 5.9% in the first quarter of 2011 to 7.4% in Q2. The household saving ratio over the year however fell slightly from 7.8% to 7.5%. Real household income rose by 1.2% after a fall of 1.7% in quarter one. Disposable income rose by 0.1% in 2010 after an increase of 1.6% in 2009.

GDP Growth Unrevised At 0.5%

The most recent quarterly national accounts show that GDP rose by 0.5% in Q1 2011. In volume terms GDP rose by 1.4%. The household saving ratio fell from 5.1% to 4.6% while household disposable income fell by 0.8%. Agricultural output increased by 0.1%.

GDP Revised Down

GDP in volume terms in 2009 has been revised down to 5% from the 4.9% published earlier in the OIE accounts. GDP increased by 1.2% on Q1 2010. Household saving was 3.2% in Q2 compared with 5.5% in Q1 and disposable income fell by 1.6% after a rise of 0.5% in the last quarter.

GDP Figures Revised Down Again

The figure for GDP volume for the fourth quarter of 2009 has been revised again to 0.4% from 0.3% last month. The chained volume GDP index for Q4 was 100.9 and 100.4 for Q3. At current market prices the GDP index was 112.6 and in Q3 it was 111.3. In 2009 as a whole volume of GDP fell by 4.9%. Total volume of production rose by 0.4% and manufacturing output volume by 0.8%. The agricultural sector ouput fell by 1.5% compared with the previous quarter. Construction output decreased by 0.9% and services increased by 0.5%.

The household saving ratio was 7% compared with 8.4% in the last quarter. Real household disposable income fell by 1%. In terms of expenditure categories gross domestic expenditure increased by 0.8%, household final consumption increased by 0.4% and government final consumption increased by 1%. The volume of household spnding is now 2.1% lower than in 2008. Government final consumption for the year 2009 increased by by 2.2%. The GDP deflator at market prices increased by 0.7% and is 1.4% above the level it was at in 2008.

Gross fixed capital formation fell by 2.7% partly due to a fall in business investment of 4.3%. General goverment investment increased by 2.8%, existing buildings and dwellings in public corporations fell by 71.3% and in the private sector existing buildings and dwellings increased by 10.3%. Over the year as a whole gross fixed capital formation decreased by 14.9% compared with -3.5% in 2008.