Households and non-financial corporations in the euro area: third quarter of 2024
- STATISTICAL RELEASE
Households and non-financial corporations in the euro area: third quarter of 2024
13 January 2025
- Households' financial investment increased at broadly unchanged annual rate of 2.4% in third quarter of 2024
- Non-financial corporations' financing increased at unchanged annual rate of 1.0%
- Non-financial corporations' gross operating surplus decreased more slowly at annual rate of -1.1% (after -3.9% in previous quarter)
Chart 1
Household financing and financial and non-financial investment
(annual growth rates)
Chart 2
NFC gross-operating surplus, non-financial investment and financing
(annual growth rates)
Households
Household gross disposable income increased in the third quarter of 2024 at a broadly unchanged annual rate of 4.6%. The compensation of employees grew at a lower rate of 5.4% (after 5.8% in the previous quarter), and gross operating surplus and mixed income of the self-employed increased at a lower rate of 3.4% (after 4.1%). Household consumption expenditure increased at a higher rate of 3.2% (after 3.0%).
The household gross saving rate increased to 15.2% in the third quarter, compared with 14.9% in the previous quarter.
Household gross non-financial investment (which refers mainly to housing) decreased at a lower annual rate of -0.3% in the third quarter of 2024 (after -1.7%). Loans to households, the main component of household financing, grew at a higher rate of 0.9% (after 0.5%).
Household financial investment increased at a broadly unchanged annual rate of 2.4% in the four quarters to the third quarter of 2024. Among its components, currency and deposits grew at a higher rate of 2.6% (after 2.3%), while investment in debt securities grew at a lower rate of 16.5% (after 28.7%). Investment in shares and other equity grew at a higher rate of 1.3% (after 0.7%) due to accelerating investments in investment fund shares (5.3% after 3.6%). Investment in life insurance and pension schemes grew at higher rates (0.6% after 0.0%, and 2.6% after 2.3%, respectively).
Household net worth increased at an annual rate of 5.4% in the third quarter of 2024, after 3.6% in the previous quarter. Net financial and non-financial assets grew due to valuation gains in addition to investments. Housing wealth, the main component of non-financial assets grew at a higher rate of 2.0% (after 1.7%). The household debt-to-income ratio decreased, to 82.7% in the third quarter of 2024 from 86.4% in the third quarter of 2023.
Non-financial corporations
Net value added by NFCs increased at a higher annual rate of 2.4% in the third quarter of 2024, after 1.3% in the previous quarter. Gross operating surplus decreased at a lower rate of -1.1% (after -3.9%), while net property income - defined in this context as property income receivable minus interest and rent payable – decreased. As a result the decline in gross entrepreneurial income (broadly equivalent to cash flow) was less pronounced (-1.1% after -2.1%).
NFC gross non-financial investment increased at an annual rate of 4.1% (after -7.9% in the previous quarter).[1] NFC financial investment grew at a broadly unchanged annual rate of 2.0% in the four quarters to the third quarter of 2024. Among its components, loans granted grew at a lower rate of 3.9% (after 4.4%), while investment in shares and other equity grew at a broadly unchanged rate of 1.5%. Financing of NFCs increased at an unchanged rate of 1.0%, as loan financing (1.3%)[2], financing via shares and other equity (0.7%) and via trade credits (1.7%) all grew at broadly unchanged rates. Financing via debt securities grew at a lower rate (2.6% after 2.9%).
NFC debt-to-GDP ratio (consolidated measure) decreased to 68.8% in the third quarter of 2024, from 70.7% in the same quarter of the previous year; the non-consolidated, wider debt measure decreased to 133.7% from 136.4%.
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Notes
- This statistical release incorporates revisions to the data since the first quarter of 2021.
- 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.
- The euro area and national financial accounts data of non-financial corporations and households are available in an interactive dashboard.
- Hyperlinks in the main body of the statistical release are dynamic. The data they lead to may therefore change with subsequent data 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.
- The ECB publishes experimental Distributional Wealth Accounts (DWA), which provide additional breakdowns for the household sector. The release of results for 2024 Q3 is planned for 28 February 2025 (tentative date).
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 and loans from other non-financial corporations) and by creditors that are not resident in the euro area.
