EU household saving rates fall as spending growth outpaces income

Household real consumption per capita increased by 0.4 per cent in the euro area during the third quarter of 2025, matching the growth recorded in the previous quarter, according to Eurostat.

In the same period, household real income per capita in the euro area saw a modest increase of 0.1 per cent, following a rise of 0.5 per cent in the second quarter of 2025.

For the European Union as a whole, household real consumption per capita increased by 0.5 per cent in the third quarter of 2025, sustaining the same growth momentum seen in the preceding three-month period.

At the same time, real income per capita across the broader union increased by 0.2 per cent, having previously grown by 0.7 per cent in the second quarter.

The increase in household real income during this period is mainly explained by the positive contribution of compensation of employees and social transfers in kind.

Conversely, current taxes and net social contributions acted as the largest negative contributor to income levels in both the euro area and the European Union.

The household saving rate decreased by 0.3 percentage points in both regions compared with the previous quarter.

Among the member states with available data, the saving rate increased in eight countries, remained stable in one, and decreased in seven.

Italy recorded the largest increase in savings at 1.4 percentage points, followed by Hungary at 1.1 percentage points and Poland at 0.6 percentage points.

The most significant downward movement in savings was observed in Greece, which saw a decline of 1.8 percentage points, followed by Sweden and Finland.

Despite these shifts, the household investment rate remained stable across both the euro area and the European Union during the third quarter.

Nine member states saw an increase in investment rates, three remained stable, and four reported a decrease.

Greece recorded the largest investment growth with a rise of 0.9 percentage points, followed by Ireland with an increase of 0.5 percentage points.

Italy saw the most notable reduction in investment, reporting a decrease of 0.3 percentage points during the quarter.

Regarding the specific situation in Cyprus, figures were not available for member states whose gross domestic product at current prices is less than 1 per cent of the total EU gross domestic product.