Household Consumption and Income Growth in the Euro Area and EU in Q3 2024

In the third quarter of 2024, real household consumption per capita increased by 0.8% in the euro area, following a 0.1% rise in the previous quarter, according to the latest analysis from Eurostat.

Real household income per capita grew by 0.4% in Q3 2024, after a 0.3% increase in Q2 2024.

These figures are derived from a detailed set of seasonally adjusted European quarterly sectoral accounts, published by Eurostat, the statistical office of the European Union.

Trends in the EU

In the EU, real household consumption per capita rose by 0.8% in Q3 2024, following a 0.1% increase in the previous quarter. Similarly, real household income per capita increased by 0.6% in Q3 2024, after a 0.5% rise in Q2 2024.

Components of Gross Disposable Household Income

During Q3 2024, gross disposable household income (in nominal terms, seasonally adjusted) increased by 0.7% in the euro area and by 0.9% in the EU.

The growth was mainly driven by a significant positive contribution from employee compensation and social benefits in both the euro area and the EU. Conversely, current taxes and net social contributions were the main negative contributors.

Household Savings Rate Declined in the Euro Area and EU

In Q3 2024, the household savings rate decreased by 0.4 percentage points (pp) in the euro area and by 0.3 pp in the EU compared to the previous quarter.

Among the member states for which data is published, the household savings rate increased in five countries, remained stable in one, and declined in nine. Greece recorded the highest increase (+1.9 pp), followed by Finland and Spain (both +1.1 pp). Meanwhile, the largest declines were observed in Hungary (-5.6 pp) and Denmark (-2.4 pp).

Household Investment Rate Declined in the Euro Area and EU

In Q3 2024, the household investment rate fell by 0.1 pp in both the euro area and the EU compared to the previous quarter.

Among the member states for which data is published, the household investment rate increased in six countries, remained stable in six, and declined in three. Denmark recorded the highest increase (+0.5 pp), followed by Hungary and Portugal (both +0.2 pp), while declines were observed in Spain (-0.3 pp), Italy, and Finland (both -0.2 pp).

The savings rate is defined as gross savings divided by gross disposable income, while the investment rate is calculated as gross fixed capital formation divided by gross disposable income, with the latter adjusted in both cases for the net change in household equity in pension fund reserves.