Sharpest drop of household real consumption per capita in both euro area and EUChristian Fernsby ▼ | July 29, 2020
In the first quarter of 2020, when Member States began to widely introduce coronavirus containment measures in March 2020, household real consumption per capita dropped 3.0% in the euro area, after a decrease of 0.4% in the previous quarter.
Drop UK house
In the EU household real consumption per capita decreased by 2.9% in the first quarter of 2020, after a decrease of 0.2% in the previous quarter.
This decline is the highest since the beginning of the time series in 1999. Household real income per capita increased by 1.2% in the first quarter of 2020, after a decrease of 1.0% in the fourth quarter of 2019.
Household gross disposable income and its components
During the first quarter of 2020, household gross disposable income increased by 0.9% in the euro area and by 1.2% in the EU.
The reduction in current taxes and net social contributions had a strong positive contribution to gross disposable income, while the contribution of social benefits was higher than usual.
The decrease observed in received wages, operating gross operating surplus and mixed income of households contributed negatively in the growth of gross disposable income in both zones.
Household saving rate significantly up in the euro area, the EU and in the Member States
In the first quarter of 2020, the saving rate increased in both the euro area and the EU by 4.3 percentage points, compared to the fourth quarter of 2019. The household saving rate increased in all Member States, for which data are available for the first quarter of 2020.
The highest increases were observed in Belgium, Denmark and the Netherlands, and the lowest in Poland, Sweden and Czechia. For all but two Member States, the increase of the saving rate was explained by the strong decrease of individual consumption expenditure.
The drop in the individual consumption expenditure of households was the most pronounced in Italy, Spain and Belgium, followed by France.
At the same time, the gross disposable income varied, increasing in Poland, Denmark, Czechia, Ireland, the Netherlands and Finland and decreasing in Spain, Italy, Portugal, Germany and Austria.
Household investment rate down in the euro area and the EU, varied in the Member States
In the first quarter of 2020 the investment rate decreased by 0.2 percentage points for the euro area and 0.3 percentage points in the EU.
Among the Member States for which data are available for the first quarter of 2020, the decrease in investment rate of households was the highest in Spain, France and Belgium. Seven Member States recorded an increase in the household investment rate, the highest being observed in Germany, the Netherlands and Denmark.
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.
The European Union (EU27) includes Belgium, Bulgaria, Czechia, Denmark, Germany, Estonia, Ireland, Greece, Spain, France, Croatia, Italy, Cyprus, Latvia, Lithuania, Luxembourg, Hungary, Malta, the Netherlands, Austria, Poland, Portugal, Romania, Slovenia, Slovakia, Finland and Sweden plus the EU institutions. ■