The statistical service of the European Union (EU) reported that this growth is attributed to consumption increasing at a slower pace than gross disposable income, at 0.6% and 0.8% respectively, between January and March, compared to the last quarter of 2024.
Meanwhile, the household investment rate in the euro area remained stable at 9.1% in the first quarter of 2025, with both gross fixed capital formation and gross disposable income rising by 0.8%.
In the same report, Eurostat indicates that in the first three months of the year, the profit share of companies (non-financial corporations) rose from 38.5% to 38.8% in the euro area. This is explained by an increase in workers’ compensation (wages and employers’ social contributions) plus taxes, minus subsidies on production by 0.9%, at a lower rate than that of the gross value added (1.4%).
The investment rate of companies in the eurozone increased from 21.4% to 22.2% in the first quarter of 2025, as gross fixed capital formation of companies rose by 5.2%, while the gross value added increased by 1.4%.
Eurostat does not publish data for the EU on these indicators.
