EUROZONE DATA
The preliminary Q2 Eurozone sectoral accounts show the savings rate having increased for 8 consecutive quarters, with the investment rate simultaneously falling. The accounts also indicate income and capital formation falling on a real, sequential basis in Q2 after a strong Q1.
- The EZ household savings rate rose a further 0.5pp to 15.7% in Q2 - elevated levels on a pre-pandemic comparison and the eighth consecutive increase. The household investment rate meanwhile decreased by 0.1pp, to 9.2%. That indicates that there is some reluctancy of households to invest disposable capital (domestically) - a common theme in the Eurozone, generally associated with a deterioration in the financial account.
- The Q2 growth rate of household gross consumption (+0.2% Q/Q) becomes negative when being looked at in real terms (that is, broadly adjusting for the around 0.4% increase in seasonally-adjusted headline HICP during Q2). This puts another angle to the rather weak growth EZ growth developments of Q2. Disposable income (+0.8% gross) at least rose slightly also in real terms.
- Household fixed capital formation meanwhile even fell on a gross basis in Q2 (-0.6% vs +0.1% prior). The series has broadly flatlined since 2023. Non-financial corporations' fixed capital formation saw a more pronounced drop of 3.7% Q/Q. Taking a total factor productivity perspective, this would also be a weak signal for labour productivity going forward - a measure which also already has been lagging in recent quarters (0.0% Q2).
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