Press Release - Euro area households and non-financial corporations: 3rd Quarter 2016
● Loans to households increased in the third quarter of 2016 at an unchanged rate of 1.9%. Household financial investment increased at a broadly unchanged rate of 2.2%. Household net worth increased at a higher rate (4.4% after 3.2% in the previous quarter).
● Non-financial corporations’ net entrepreneurial income (broadly equivalent to current profits) increased at a lower rate (0.2% after 4.7%) as net operating surplus and net property income decelerated. Their financing increased at a lower rate of (1.9% after 2.2%).
Households
Household gross disposable income increased at a lower annual rate of 1.9% in the third quarter of 2016 (after 2.7% in the second quarter). Gross operating surplus and mixed income from the self-employed increased at a lower rate (third quarter 2016: 2.4%, second quarter: 3.1%), as did the compensation of employees (2.6% after 2.8%). Household consumption expenditure increased at a lower rate of 1.7% (after 2.2%).
The household gross saving rate in the third quarter of 2016 was 12.5%, compared to 12.3% a year ago. Household gross non-financial investment (which refers mainly to housing) grew at a lower rate compared with the previous quarter (5.3% after 5.6%). Loans to households, the main component of household financing increased at an unchanged rate of 1.9%.
Household financial investment grew at a broadly unchanged rate of 2.2%. Among the components, currency and deposits grew at a higher rate (3.7% after 3.3%). Life insurance and pension schemes grew at an unchanged rate (3.1%), while shares and other equity decelerated (1.4% after 2.1%). Investment in debt securities continued to decline at a high rate (-10.6% after -10.8%).
Household net worth increased at a higher rate (4.4% after 3.2%), as accelerating net valuation gains on financial and non-financial assets and continued financial and non-financial investments were only partly offset by the incurrence of liabilities. The value of housing wealth increased at a higher rate (4.7% after 4.1%). The household debt-to-income ratio continued to decrease, to 93.5% in the third quarter of 2016 from 94.2% in the third quarter of 2015, as disposable income grew faster than loans to households. Table A summarises the main results for households, expressed as a percentage of adjusted disposable income (For details, see also Table 1 in the Annex).
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