In September 2008 compared with August 2008, the industrial producer price index 1 fell by 0.2% in both the euro area(EA15) and the EU27. In August, prices decreased by 0.5% and 0.8% respectively.
In September 2008 compared with September 2007, industrial producer prices increased by 7.9% in the euro area and by 10.1% in the EU27.
These figures come from Eurostat, the Statistical Office of the European Communities.
Monthly changes
In September 2008, compared with the previous month, prices in total industry excluding the energy sector remained stable in the euro area and increased by 0.1% in the EU27 . Prices in the energy sector fell by 0.9% and 0.7% respectively. In both zones, durable consumer goods gained 0.2%. Capital goods increased by 0.1% in the euro area and by 0.2% in the EU27 . Non-durable consumer goods fell by 0.1% in the euro area and remained stable in the EU27 . In both zones, intermediate goods decreased by 0.1%.
Among Member States for which data are available, the highest increases in the total index were registered in Cyprus (+1.9%), Denmark (+1.2%) and Slovakia (+0.6%). The largest falls were observed in Bulgaria (-1.0%), Romania (-0.9%) and Ireland , Greece and Spain (all -0.7%), while prices remained stable in Finland .
Annual changes
In September 2008, compared with September 2007, prices in total industry excluding the energy sector increased by 4.1% in the euro area and by 4.8% in the EU27 . Prices in the energy sector rose by 20.3% and 25.7% respectively. Intermediate goods gained 5.8% in the euro area and 6.5% in the EU27 . Non-durable consumer goods increased by 3.4% and 4.5% respectively. Durable consumer goods rose by 2.5% in the euro area and by 2.7% in the EU27 . Capital goods gained 2.2% and 2.8% respectively.
Among Member States for which data are available, the highest increases in the total index were observed in Luxembourg (+25.6%), Denmark (+19.9%) and the United Kingdom (+19.4%), and the lowest in the Czech Republic and Ireland (both +5.5%) and Slovenia (+5.7%).
The index of producer prices shows (in the national currency of the country concerned) changes in the ex-works sale prices of all products sold on the domestic markets of the various countries, excluding imports. Euro area and EU indices refer to overall weighted price changes. The figures are not adjusted. Missing observations from Member States for recent months are estimated for the calculation of the euro area and the EU.
The euro area (EA15) consists of Belgium, Germany, Ireland, Greece, Spain, France, Italy, Cyprus, Luxembourg, Malta, the Netherlands, Austria, Portuga , Slovenia and Finland.
The EU27 includes Belgium (BE), Bulgaria (BG), the Czech Republic (CZ), Denmark (DK), Germany (DE), Estonia (EE), Ireland (IE), Greece (EL), Spain (ES), France (FR), Italy (IT), Cyprus (CY), Latvia (LV), Lithuania (LT), Luxembourg (LU), Hungary (HU), Malta (MT), the Netherlands (NL), Austria (AT), Poland (PL), Portugal (PT), Romania (RO), Slovenia (SI), Slovakia (SK), Finland (FI), Sweden (SE) and the United Kingdom (UK).
Data of previous months have been revised compared to those issued in News Release 137/2008 of 2 October 2008. The monthly and annual growth rates for August 2008 for total industry excluding construction remain the same for the euro area. For the EU27, the monthly growth rate previously published was -0.7% and the annual growth rate was +10.4%.
Data are supplied by Estonia , Latvia and Malta , but their series are not long enough to be integrated in the calculation.
Sector Accounts: Second quarter of 2008 Household saving rate at 13.9% in the euro area and 10.2% in the EU27 Business investment rate at 23.3% in the euro area and 23.9% in the EU27
Eurostat, the Statistical Office of the European Communities , and the European Central Bank (ECB) release a detailed set of quarterly European sector accounts 1 . This Eurostat News Release focuses on three key indicators: the household saving rate, and the investment rate and profit share of non-financial businesses. Developments in the euro area are detailed in an annex.
Household saving rates up in both zones
In the second quarter of 2008, the seasonally adjusted 2 gross saving rate 3 of households was 13.9% in the euro area 4 (EA15). It was 13.7% in the first quarter of 2008. In the EU27 5 , the household saving rate was 10.2% in the second quarter of 2008, compared with 10.0% in the first quarter of 2008.
Household saving rate (seasonally adjusted, %)
Business investment rate stable in the euro area, up in the EU27
The investment rate 6 of non-financial corporations was 23.3% in the euro area in the second quarter of 2008. It was also 23.3% in the first quarter of 2008. In the EU27 , the investment rate was 23.9% in the second quarter of 2008, compared with 23.6% in the first quarter of 2008.
Investment rate of non-financial corporations (seasonally adjusted, %)
In the second quarter of 2008, the profit share 7 of non-financial corporations was 38.6% in the euro area . It was 38.8% in the first quarter of 2008. In the EU27 , the profit share was 38.4% in the second quarter of 2008 compared with 38.2% in the first quarter of 2008.
Profit share of non-financial corporations (seasonally adjusted, %)
Methodological information
The compilation of the European sector accounts follows the European System of Accounts (ESA 95) and covers the period from the first quarter of 1999 to the second quarter of 2008. The European sector accounts are not a simple sum of the data of individual countries. There are six specific compilation steps: (1) conversion to euro, (2) estimation of missing countries, (3) incorporation of the European institutions, (4) estimation of the flows between the euro area / EU and third countries, (5) balancing of the accounts and (6) seasonal adjustment of key series. Due to the conversion to euro, the growth rates of EU aggregates may be affected by movements in exchange rates and should be viewed with caution. However, there is hardly any impact on ratios such as saving and investment rates or profit shares. For the time being, the publication is limited to the European aggregates: the EA15 and the EU27, i.e. no quarterly individual country data are published by Eurostat.
The rest of the world accounts , as compiled by Member States, record transactions between the national economy and all non-resident units, including those in other EU Member States. To measure the external transactions of the euro area / EU, it is necessary to remove cross-border flows within the area concerned. Imbalances between intra-imports and intra-exports, called “asymmetries”, are then eliminated. Currently, intra-flows and resulting asymmetries are not removed in the other domains of national accounts of Eurostat. Therefore, European sector accounts are internally consistent but have discrepancies with other national accounts data.
The quarterly releases are published four months after each quarter. The next release will take place on 30 January 2009.
The whole time series are revised every quarter. Compared with News Release 110/2008 of 1 August 2008, the household saving rate remained unchanged in both zones, while the business investment rate was revised from 22.9% to 23.3% in the euro area and from 23.2% to 23.6% in the EU27.
The ECB and Eurostat are publishing integrated non-financial and financial accounts, including financial balance sheets, for the euro area. Eurostat is also publishing the non-financial accounts of the European Union.
Institutional sectors bring together economic units with broadly similar characteristics and behaviour, namely: households (including n on-profit institutions serving households) , non-financial corporations, financial corporations, government and the rest of the world .
Seasonal adjustment has been performed using the Tramo-Seats method. Euro area seasonally adjusted series are built up indirectly as the sum of seasonally adjusted components. On the contrary, as European Union series are affected by exchange rate movements, the EU ratios have been adjusted directly.
The gross saving rate of households is defined as gross saving divided by gross disposable income. The latter is adjusted for the change in the net equity of households in pension funds reserves. Gross saving is the part of the gross disposable income which is not spent as final consumption expenditure. Therefore, saving rates increase when gross disposable income grows at a higher rate than final consumption expenditure.
The euro area (EA15) consists of 15 Member States from 1 January 2008: Belgium , Germany , Ireland , Greece , Spain , France , Italy , Cyprus , Luxembourg , Malta , the Netherlands , Austria , Portugal , Slovenia and Finland plus the European Central Bank. In this release the data are provided for the EA15 back to first quarter of 1999.
The European Union (EU27) consists of 27 Member States: Belgium, Bulgaria, the Czech Republic, Denmark, Germany, Estonia, Ireland, Greece, Spain, France, Italy, Cyprus, Latvia, Lithuania, Luxembourg, Hungary, Malta, the Netherlands, Austria, Poland, Portugal, Romania, Slovenia, Slovakia, Finland, Sweden and the United Kingdom plus the European Central Bank and the EU institutions.
The gross investment rate of non-financial corporations is defined as gross fixed capital formation divided by gross value added. This ratio relates the investment of non-financial businesses in fixed assets (buildings, machinery etc.) to the value added created during the production process. The seasonally adjusted data published in this news release have been adjusted for one outlier found in national data, in the second quarter of 2005.
The profit share of non-financial corporations is defined as gross operating surplus divided by gross value added. This profitability-type indicator shows the share of the value added created during the production process remunerating capital. It is the complement of the share of wage costs (plus net taxes on production) in value added.
