2010.07.2909:33:00UTC+00Eurozone Households Saving Rate Drops In Q1

Eurozone household saving rate fell in the first quarter as real disposable income dropped at a faster pace than real final consumption expenditure.

The seasonally adjusted gross saving rate of households was 14.6% in the first quarter compared with 15% in the fourth quarter. Real disposable income dropped 0.6%, faster than the 0.1% decline seen in the real final consumption expenditure. Eurostat said the real disposable income dropped due to a 0.2% fall in nominal disposable income. At the same time, the prices of goods and services consumed by households increased by 0.4%.

The household investment rate was 8.7% in the first quarter, compared with 8.8% in the previous quarter. The decrease was due to gross fixed capital formation falling faster in nominal terms than nominal disposable income.

In EU27, the seasonally adjusted gross saving rate of households was 13%, compared with 13.4% in the fourth quarter of 2009. The gross investment rate of households was 7.7%, down from 8% in the previous period.

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