The household saving rate in the euro area increased to 16.9% in the first quarter of 2020, from 12.7% in the fourth quarter of 2019, the highest increase since 1999, according to a data release of seasonally adjusted quarterly European sector accounts from Eurostat, the statistical office of the European Union and the European Central Bank (ECB).
According to Eurostat, the household investment rate in the euro area was 8.7% in the first quarter of 2020, lower than the rate of 9.1% during the previous quarter.
The quarterly increase of the household saving rate of 4.2 percentage points is related to 0.9% increase of gross disposable income and 4.0% decline in individual consumption expenditure of households.
The quarterly decline of 0.4 percentage points compared to the previous quarter is explained by 3.2% decline in gross fixed capital formation and 0.9% increase of gross disposable income.
Meanwhile, in the first quarter of 2020, the business profit share dropped to 37.9% in the euro area, compared with 39.6% in the previous quarter. This decline of the business profit share is the highest since the beginning of the series in 1999. The business investment rate in the euro area was slightly down to 25.5% in the first quarter of 2020, compared with 25.8% in the previous quarter.