Euzone: Household Income Falling

Today's publication's of Eurozone statistic confirms the profound malahise.

Fourth quarter of 2012 Household saving rate down to 12.2% in the euro area and to 10.7% in the EU27

Household real income per capita fell by 1.1% in the euro area

In the fourth quarter of 2012, the household saving rate in the euro area was 12.2%, compared with 12.8% in the third quarter of 20123. In the EU274, the household saving rate was 10.7%, compared with 11.0% in the previous quarter.

These data come from a detailed set of seasonally adjusted quarterly European sector accounts released by Eurostat, the statistical office of the European Union and the European Central Bank (ECB).

Household saving rate (seasonally adjusted).
Household investment rate remained at low levels in both zones.

In the EU 27, the household investment rate was 8.1% in the fourth quarter of 2012, compared with 8.0% in the third quarter of 20123. In the euro area, the household investment rate was 8.9%, stable compared with the previous quarter.
Household investment rate (seasonally adjusted)

In the euro area, in nominal terms, household income fell by 0.5% in the fourth quarter of 2012, while consumption increased by 0.1% and investment (gross fixed capital formation, mostly in dwellings) fell by 0.2%.

Nominal growth of household adjusted gross disposable income, actual final consumption and gross fixed capital formation (euro area)

In the euro area, in nominal terms, the decrease in household income (-0.5%) was due to the negative contributions of wages9 (-0.3 percentage points), taxes (-0.2 pp) and gross operating surplus and mixed income
(-0.1 pp) while social benefits (+0.1 pp) contributed positively.

Anna van Densky

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