Households’ financial investment increased with annual rate of growth of 2.7% in second quarter of 2022, compared with 3.0% in first quarter of 2022

Non-financial corporations’ financing grew at broadly unchanged rate of 3.3%

Non-financial corporations’ gross operating surplus increased at lower annual rate of 6.4%, after 6.7%

Data for household financing and financial and non-financial investment (Chart 1)

Sources: ECB and Eurostat

Data for NFC gross-operating surplus, non-financial investment and financing (Chart 2)

Sources: ECB and Eurostat

## Households

Household gross disposable income increased at an annual rate of 6.3% in the second quarter of 2022 (after 5.3% in the previous quarter). Compensation of employees grew at a broadly unchanged rate of 7.7%, while gross operating surplus and mixed income of the self-employed increased at a lower rate of 5.7% (after 6.0%). Household consumption expenditure grew at a lower rate of 13.0% (after 14.0%).

The household gross saving rate (calculated from four-quarter sums) was 15.1% in the second quarter of 2022, compared with 16.3% in the previous quarter.

Household gross non-financial investment (which refers mainly to housing) increased at an annual rate of 14.9% in the second quarter of 2022, down from 15.6% in the previous quarter. Loans to households, the main component of household financing, increased at a broadly unchanged rate of 4.3%, while other liabilities grew at a higher rate of 16.2% (after 12.8%).[1]

Household financial investment increased at an annual rate of 2.7% in the second quarter of 2022, down from 3.0% in the previous quarter. Among its components, currency and deposits grew at a lower rate of 3.7% (after 4.2%). Investment in life insurance and pension schemes increased at a broadly unchanged rate of 1.9% and shares and other equity grew at a lower rate of 2.1% (after 2.6%). Disinvestment from debt securities continued, though at a much slower pace (-0.9%).

Household net worth grew at a lower annual rate of 2.7% in the second quarter of 2022, after 5.6% in the previous quarter. The growth of net worth was predominantly due to valuation gains in non-financial assets, followed by financial and non-financial investment, while the deceleration was mainly driven by higher valuation losses in financial assets. Housing wealth, the main component of non-financial assets, grew at a lower rate of 8.1% (after 8.3%). The household debt-to-income ratio decreased to 95.0% in the second quarter of 2022 from 95.8% in the second quarter of 2021.

## Non-financial corporations

Net value added by NFCs increased at a lower annual rate of 10.7% in the second quarter of 2022, after 11.4% in the previous quarter. Gross operating surplus grew at a lower rate of 6.4%, after 6.7% in the previous quarter, and net property income (defined in this context as property income receivable minus interest and rent payable) increased. As a result gross entrepreneurial income (broadly equivalent to cash flow) increased at a lower rate of 5.9% (after 7.7%).[2]

NFCs’ gross non-financial investment decreased (at an annual rate of -2.6%), due to large net disposals of non-produced assets, after a growth of 16.8% in the previous quarter.[3] NFCs’ financial investment increased at an unchanged rate of 5.1%. Compared with the previous quarter, loans granted grew at a lower rate of 6.6% (after 7.2%) and investment in debt securities increased, at a rate of 5.7%, after decreasing in the previous quarter. Currency and deposits, as well as investment in shares and other equity, grew at broadly unchanged rates of 8.6% and 2.2%, respectively.

Financing of NFCs increased at a broadly unchanged annual rate of growth of 3.3%, mirroring the increase in the growth rate of financing via loans (5.4% after 4.6%)^{[4]}, while financing via debt securities (5.1% after 5.8%) and trade credits (12.8% after 13.5%) decelerated. Equity financing grew at a broadly unchanged rate of 1.2%.

NFCs’ debt-to-GDP ratio (consolidated measure) decreased to 77.2% in the second quarter of 2022, from 79.7% in the same quarter of the previous year; the non-consolidated, wider debt measure decreased to 140.3% from 142.8%.

ecb.europa.eu