First quarter of 2019: Business investment stable at 23.6% in the euro area
In the first quarter of 2019, the business investment rate was 23.6% in the euro area, stable compared to previous quarter.
The business profit share in the euro area was 39.8% in the first quarter of 2019, compared with 40.0% in the fourth quarter of 2018.
These data come from a first release of seasonally adjusted quarterly European sector accounts from Eurostat,
the statistical office of the European Union, and the European Central Bank (ECB).
The euro area (EA19) consists of 19 Member States: Belgium, Germany, Estonia, Ireland, Greece, Spain, France, Italy, Cyprus, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Austria, Portugal, Slovenia, Slovakia and Finland, plus the European Central Bank and the European Stability Mechanism.
Methods and definitions
The gross investment rate of non-financial corporations is defined as gross fixed capital formation divided by gross value added. This ratio relates the investment of non-financial businesses in fixed assets (buildings, machinery etc.) to the value added created during the production process.
The profit share of non-financial corporations is defined as gross operating surplus divided by gross value added. This profitability-type indicator shows the share of the value added created during the production process remunerating capital. It is the complement of the share of wage costs (plus other taxes less other subsidies on production) in value added.
The compilation of the European sector accounts follows the European System of Accounts 2010 (ESA2010) and covers the period from the first quarter of 1999 onwards.