Data from Eurostat shows that the business investment rate in the EU decreased to 22.1% (from 22.4% in Q1) in Q2 2025, while the rate for the euro area decreased 21.6% (from 22.1% in Q1). The business profit share remained nearly stable in both the EU and the euro area during the second quarter of 2025.
In the EU, the profit share stood at 39.4%, compared with 39.6% in the previous quarter. In the euro area, it was 39.2%, slightly down from 39.3% in the first quarter.
The gross investment rate of non-financial corporations is defined as gross fixed capital formation divided by gross value added. This ratio measures the proportion of value added that is invested in fixed assets such as buildings, machinery and equipment during the production process. The profit share of non-financial corporations is defined as gross operating surplus divided by gross value added. It represents the portion of value added that remunerates capital, complementing the share of value added allocated to labour costs (compensation of employees) and to net taxes on production (taxes less subsidies).
Investment, measured by gross fixed capital formation, fell by -1.4%, contributing to a lower overall business investment rate. Meanwhile, business gross value added remained broadly stable at +0.9%, and the combined growth in employee compensation (wages and social contributions) and taxes less subsidies on production reached +1.1%. Together, these factors resulted in a nearly unchanged profit share across the euro area. You can get the full details from the Eurostat News Release which can be downloaded from their website at https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Quarterly_sector_accounts_-_non-financial_corporations or on request from MTA