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Households and non-financial corporations in the euro area: second quarter of 2025

Source: European Central Bank

7 October 2025

Chart 1

Household financing and financial and non-financial investment

(annual growth rates)

Sources: ECB and Eurostat.

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

Chart 2

NFC gross-operating surplus, non-financial investment and financing

(annual growth rates)

Source: ECB and Eurostat.

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

Households

Household gross disposable income increased at a broadly unchanged annual rate of 3.2% in the second quarter of 2025. Compensation of employees grew at a lower rate of 4.6% (after 4.8% the previous quarter). Gross operating surplus and mixed income of the self-employed increased at a higher rate of 2.2% (after 1.4%). Household consumption expenditure grew at a higher rate of 3.3% (after 3.1%).

The household gross saving rate was unchanged at 15.2% in the second quarter of 2025 compared to the previous quarter.

Household gross non-financial investment (which refers mainly to housing) increased at a higher annual rate of 2.9% (after 0.4% in the previous quarter). Loans to households, the main component of household financing, grew at a higher rate of 2.0% (after 1.7%).

Household financial investment increased at a broadly unchanged rate of 2.5% in the second quarter of 2025. Among its components, currency and deposits grew at a broadly unchanged rate of 2.9%. For debt securities the growth rate decreased to 0.0% (after 3.1% in the previous quarter). Investment in shares and other equity grew at a higher rate of 2.6% (after 2.3%) mainly due to continued high growth of investments in investment fund shares (8.3% after 7.9%). Investment in life insurance (1.9% after 1.7%) and in pension schemes (2.3% after 2.1%) increased at higher rates.

Household net worth increased at a higher rate of 5.0% in the second quarter of 2025 (after 4.5%). The growth in net worth was due to continued valuation gains in non-financial assets and increasing valuation gains in financial assets, in addition to investments. Housing wealth, the main component of non-financial assets grew at a broadly unchanged rate of 4.7%. The household debt-to-income ratio decreased to 81.5% in the second quarter of 2025, from 83.1% in the second quarter of 2024.

Non-financial corporations

Net value added by NFCs increased at a broadly unchanged annual rate of 4.0% in the second quarter of 2025. Gross operating surplus grew at a higher rate of 2.2% (after 1.8% in the previous quarter), while net property income (defined in this context as property income receivable minus interest and rent payable) increased at a lower rate (1.8% after 15.8%). As a result, gross entrepreneurial income (broadly equivalent to cash flow) increased at a lower rate of 2.1% (after 3.1%).[1]

NFCs’ gross non-financial investment increased at a higher rate of 11.5% (after 7.8%). Financial investment grew at an unchanged rate of 2.1%. Among its components, loans granted grew at a broadly unchanged rate of 2.9%, while investment in shares and other equity grew at a higher rate of 0.7% (after 0.4%).

Financing of NFCs increased at an unchanged rate of 1.3%. Loan financing grew at a broadly unchanged rate of 2.1%.[2] Debt securities net issuance increased at a higher rate (2.4% after 1.6%), and trade credit financing grew at an unchanged rate of 4.0%. Equity financing grew at a broadly unchanged rate of 0.5%.

The NFC debt-to-GDP ratio (consolidated measure) decreased to 66.5% in the second quarter of 2025, from 68.1% in the same quarter of the previous year; the non-consolidated, wider debt measure decreased to 137.8% from 139.8%.

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Notes