- STATISTICAL RELEASE
Households and non-financial corporations in the euro area: third quarter of 2022
11 January 2023
- Households' financial investment increased at slightly lower annual rate of 2.6% in third quarter of 2022, after 2.7% in second quarter
- Non-financial corporations' financing increased at higher rate of 3.6%, after 3.2%
- Non-financial corporations' gross operating surplus increased at higher rate of 7.6%, after 5.0%
Chart 1. Household financing and financial and non-financial investment
Annual growth rates
Source: ECB and Eurostat
Chart 2. NFC gross-operating surplus, non-financial investment and financing
Annual growth rates
Households
Household gross disposable income increased at an annual rate of 6.9% in the third quarter of 2022 (after 5.9% in the previous quarter). Compensation of employees grew at a lower rate of 5.9% (after 7.7%), while gross operating surplus and mixed income of the self-employed increased at a broadly unchanged rate of 5.8%. Household consumption expenditure grew at a lower rate of 9.6% (after 12.8%).
The household gross saving rate (calculated from four-quarter sums) was 14.2% in the third quarter of 2022, compared with 14.8% in the previous quarter.
Household gross non-financial investment (which refers mainly to housing) increased at an annual rate of 10.6% in the third quarter of 2022, down from 16.2% in the previous quarter. Loans to households, the main component of household financing, increased at a lower rate of 4.1% (after 4.3%), while other liabilities[1] grew at a higher rate of 15.3% (after 14.3%).
Household financial investment increased at a slightly lower annual rate of 2.6% in the third quarter of 2022, after 2.7% in the previous quarter. Among its components, currency and deposits grew at a higher annual rate of 4.1% (after 3.8%). Investment in life insurance and pension schemes grew at a lower rate of 1.5% (after 1.8%) and shares and other equity grew at a lower rate of 1.7% (after 2.4%). Investment in debt securities increased at an annual rate of 6.6%, compared to -0.5% in the previous quarter.
Household net worth grew at an annual rate of 2.0% in the third quarter of 2022, after 3.5% in the previous quarter. The growth of net worth was predominantly due to valuation gains in non-financial assets, followed by financial and non-financial investment. The deceleration of growth was mainly driven by higher valuation losses in financial assets. Housing wealth, the main component of non-financial assets, grew at a lower rate of 7.6% (after 8.7%). The household debt-to-income ratio decreased to 94.6% in the third quarter of 2022 from 96.0% in the third quarter of 2021.
Non-financial corporations
Net value added by NFCs increased at an annual rate of growth of 8.2% in the third quarter of 2022, after 10.3% in the previous quarter. Gross operating surplus increased at a higher rate of 7.6%, after 5.0% in the previous quarter, while net property income (defined in this context as property income receivable minus interest and rent payable) increased at a lower rate (18.9% after 19.2%). As a result gross entrepreneurial income (broadly equivalent to cash flow) increased at a higher rate of 8.4% (after 7.4%).[2]
NFCs’ gross non-financial investment increased at an annual rate of 30.9%, mainly due to an increase in gross fixed capital formation, which includes a large acquisition of intellectual property products, compared to a decrease in the previous quarter (-4.3%) which was due to large net disposals of non-produced assets.[3] NFCs’ financial investment increased at an unchanged rate of 4.8%. Compared with the previous quarter, loans granted as well as currency and deposits grew at lower rates of 6.2% (after 6.6%) and 7.0% (after 7.9%) respectively, while net purchases of shares and other equity grew at a higher rate of 3.1% (after 2.4%).
Financing of NFCs increased at a higher annual rate of 3.6% (after 3.2%), reflecting higher growth rates of financing via loans (6.3% after 5.5%)[4] and equity (1.6% after 1.2%), while financing via debt securities (3.3% % after 4.9%) and trade credits (9.5% after 11.6%) decelerated.
NFCs’ debt-to-GDP ratio (consolidated measure) decreased to 77.7% in the third quarter of 2022, from 79.4% in the same quarter of the previous year; the non-consolidated, wider debt measure decreased to 140.2% from 142.5%.
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Notes
- The annual growth rate of non-financial transactions and of outstanding assets and liabilities (stocks) is calculated as the percentage change between the value for a given quarter and that value recorded four quarters earlier. The annual growth rates used for financial transactions refer to the total value of transactions during the year in relation to the outstanding stock a year before.
- Hyperlinks in the main body of the statistical release lead to data that may change with subsequent releases as a result of revisions. Figures shown in annex tables are a snapshot of the data as at the time of the current release.
Other liabilities comprise other accounts payable (e.g. trade credits), financial derivatives’ net liabilities, and liabilities from pension schemes.
Gross entrepreneurial income is the sum of gross operating surplus and property income receivable minus interest and rent payable.
Gross non-financial investment is the sum of gross fixed capital formation, changes of inventories, and the net acquisition of valuables and non-produced assets (e.g. licences).
Loan financing comprises loans granted by all euro area sectors (in particular MFIs, non-MFI financial institutions, general government and other non-financial corporations) and by creditors that are not resident in the euro area.