July 26, 2024 09:37 GMT
Q1 Sectoral Accounts Suggest Solid Real Income Gains
EUROZONE DATA
The Q1 Eurozone sectoral accounts suggest solid real income gains last quarter. As consumption growth lagged behind income growth, there was a resulting increase in the savings rate. Also, the accounts show savings continuing to outpace investment - suggesting a deterioration of the EZ capital account.
- Household real consumption per capita increased by 0.2% Q/Q (vs +0.1% Q4). Real disposable income per capita meanwhile increased 1.5% Q/Q (vs +0.7% Q4).
- This led the household savings rate to increase by 1.4 percentage points compared to Q4, to 15.4%, continuing its upward trend..
- The household investment rate meanwhile decreased by 0.1pp, to 9.5%, also in line with recent trends - indicating a deterioration of the EZ capital account.
- Looking at the individual countries, the theme that savings outpaced investment (which started around mid-2022) was quite broad-based. A notable exception was Greece, where a 2.0pp decline in the savings rate amid gross fixed capital formation jumping 13.5% indicate large foreign-financed investments in Q1.
MNI, Eurostat
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