Euro area households and non-financial corporations: first quarter 2024

July 4, 2024

• Households' financial investment increased at an unchanged annual rate of 2.0% in the first quarter of 2024
• Non-financial companies funding increased at a broadly unchanged annual rate of 0.7%
• Non-financial companies 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 investments

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

Households

Household gross disposable income French GDP grew in the first quarter of 2024 at an annual rate of 5.8%, after 5.6% in the previous quarter. Compensation of employees grew at a broadly unchanged rate of 5.9%, and gross operating surplus and mixed income of the self-employed grew at a slower rate of 5.0% (after 5.3%). Household consumption expenditure grew at a slower rate of 3.5% (after 4.1%).

Household chores 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 household income gross non-financial investment (which mainly concerns housing) decreased to -2.6% in the first quarter of 2024, compared to 1.2% in the previous quarter. Loans Loans to households, the main component of their financing, increased at an unchanged rate of 0.7%.

Household financial investment French increased at an unchanged rate of 2.0% in the first quarter of 2024. Among its components, fiat money and deposits increased at a higher rate of 1.8% (from 0.8%), while debt securities increased at a lower rate (40.4% from 56.6%). Investments in stocks and other equity decreased at an unchanged rate (-0.2%). Life insurance decreased at a broadly unchanged rate (-0.3%), while pension plans increased at a broadly unchanged rate of 2.5%.

Household net value Net financial assets increased by 2.3% in the first quarter of 2024, after 2.0% in the previous quarter. Net financial assets increased due to valuation gains in addition to investments, while non-financial assets decreased due to valuation losses in excess of investments. Real estate wealththe main component of non-financial assets, decreased (-0.9%) less quickly 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 companies

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

The annual growth rate of contactless companies gross non-financial investment decreased to -4.8%, compared to 3.3% in the previous quarter.^[2] NFC financial investment Investments in shares and other equity investments grew at an annual rate of 1.8%, after 1.6%. Among its components, investments in shares and other equity investments grew at a higher rate of 1.4% (after 0.8%) while loans granted by SNFs grew at an unchanged rate of 4.0%.

Funding Cash flows of non-financial corporations increased at a broadly unchanged pace of 0.7% compared with the previous quarter. Debt financing also grew at a broadly unchanged pace (0.9%), while debt financing (2.0%, after 1.7%), shares and other equity (0.3%, after 0.1%) and trade credit (1.2%, after 0.8%) all grew at higher rates.

NFC debt-to-GDP ratio (consolidated measure) decreased to 67.5% in the first quarter of 2024, compared to 70.9% in the same quarter of the previous year; unboundthe broad debt measure decreased from 132.5% to 127.4%.

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Remarks

• This statistical release incorporates data revisions since the first quarter of 2020.
• Revisions could be higher in this and subsequent releases, as in 2024 EU countries will implement a baseline revision in key macroeconomic statistics. For more information, see also: https://ec.europa.eu/eurostat/web/esa-2010/data-revision.
• The annual growth rate of non-financial transactions and of outstanding assets and liabilities (stocks) is calculated as the percentage change between the value in a given quarter and that recorded four quarters earlier. The annual growth rates used for financial transactions relate to the total value of transactions during the year compared with the stock one year earlier.
• Euro area and national financial accounts data for non-financial corporations and households are available in an interactive dashboard.
• Hyperlinks in the body of the statistical release are dynamic. The data they refer to may therefore change over the course of subsequent data releases as a result of revisions. The figures presented in the tables in the appendix are a snapshot of the data at the time of the current release.
• ECB publishes data Wealth distribution accounts (DWA), which provide additional breakdowns for the household sector. The publication of the first quarter 2024 results is scheduled for the end of August 2024.