Households and non-financial corporations in the euro area: first quarter of 2024

July 4, 2024

• Homes Financial investment increased at an unchanged annual rate of 2.0% in the first quarter of 2024
• Non-financial corporations financing grew at a virtually unchanged annual rate of 0.7%
• Non-financial corporations gross operating surplus decreased at an annual rate of -3.0%, after increasing (2.4%) in the previous quarter

Data on household financing and financial and non-financial investment

Data on gross operating surplus, non-financial investment and NFC financing

Homes

Familiar gross disposable income In the first quarter of 2024, household consumption expenditure increased at an annual rate of 5.8%, compared with 5.6% in the previous quarter. Compensation of employees grew at a practically unchanged rate of 5.9%, and gross operating surplus and mixed income of self-employed persons increased at a lower rate of 5.0% (compared to 5.3%). Household consumption expenditure grew at a lower rate of 3.5% (compared to 4.1%).

The owner of the house gross savings rate increased to 14.1% in the first quarter of 2024, compared to 13.7% in the previous quarter.

The annual growth rate of households gross non-financial investment (which mainly refers to housing) decreased to -2.6% in the first quarter of 2024, from 1.2% in the previous quarter. Loans Credit to households, the main component of their financing, increased at a constant rate of 0.7%.

Familiar Financial investment The banking sector grew at an unchanged pace of 2.0% in the first quarter of 2024. Among its components, currency and deposits increased at a faster pace of 1.8% (vs. 0.8%), while debt securities grew at a slower pace (40.4% after 56.6%). Investment in stocks and other equity decreased at an unchanged pace (-0.2%). Life insurance decreased at a virtually unchanged pace (-0.3%), while pension plans increased at a virtually unchanged pace of 2.5%.

Familiar net worth Net financial assets increased at a rate of 2.3% in the first quarter of 2024, after 2.0% in the previous quarter. Net financial assets grew due to valuation gains in addition to investments, while non-financial assets decreased due to valuation losses exceeding investments. Real estate wealthmain component of non-financial assets, decreased (-0.9%) at a slower pace than in the previous quarter (-1.4%). debt-to-income ratio decreased to 85.9% in the first quarter of 2024 from 90.9% in the first quarter of 2023.

Non-financial corporations

Net added value NFC revenue increased at a slower annual rate of 1.7% in the first quarter of 2024 after 5.4% in the previous quarter. Gross operating surplus decreased (-3.0% after 2.4%), while net property income – defined in this context as property income receivable less interest and rent payable – increased (3.2%, after -15.2%). gross business income (largely equivalent to cash flow) decreased (-2.5%, after 0.1%).^[1]

The annual growth rate of NFC gross non-financial investment decreased to -4.8%, from 3.3% in the previous quarter.^[2] NFC's Financial investment grew at an annual rate of 1.8%, up from 1.6%. Among its components, investment in shares and other equity grew at a higher rate of 1.4% (up from 0.8%), while loans granted by non-financial corporations grew at an unchanged rate of 4.0%.

Financing The volume of non-financial corporations increased at a virtually unchanged pace of 0.7% compared with the previous quarter. Loan financing also grew at a virtually unchanged pace (0.9%), while financing through debt securities (2.0%, after 1.7%), shares and other equity (0.3%, after 0.1%) and trade credits (1.2%, after 0.8%) grew at higher rates.

NFC's debt/gdp ratio (consolidated measure) decreased to 67.5% in the first quarter of 2024, from 70.9% in the same quarter of the previous year; unconsolidatedThe broadest measure of debt fell from 132.5% to 127.4%.

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Grades

• This statistical release incorporates revisions to data from the first quarter of 2020.
• Revisions may be larger in this and subsequent versions, as EU countries will implement a baseline revision of key macroeconomic statistics in 2024. For more information, see also: https://ec.europa.eu/eurostat/web/esa-2010/data-revision.
• The annual growth rate of non-financial transactions and outstanding assets and liabilities (stocks) is calculated as the percentage change between the value of a given quarter and the 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 of the previous year.
• Data on national and euro area financial accounts of non-financial corporations and households are available in a interactive whiteboard.
• The hyperlinks appearing in the main body of the statistical publication are dynamic. Therefore, the data to which they lead may change with subsequent data releases as a result of revisions. The figures shown in the tables in the annex are a snapshot of the data at the time of the current publication.
• ECB publishes experimental data Distributive wealth accounts (DWA), which provides additional breakdowns for the household sector. The publication of the results for the first quarter of 2024 is scheduled for the end of August 2024.