According to data from Eurostat the profitability rate for non-financial corporations in the Euro-zone was unchanged from Q3-2025 at 39.5% – broadly the level it has been at for the past six quarters. The business investment rate fell to 21.4% in the 4th quarter of 2025, its lowest level since Q3-2015.
The profit share of non-financial corporations is defined as gross operating surplus divided by gross value added; in turn, the operating surplus is measured by the compensation of employees (wages and employers’ social contributions) plus taxes less subsidies on production. In the latest results, this grew by +0.8% compared to the previous quarter, which is the same rate as for gross value-added, hence the unchanged ratio.
The gross investment rate of non-financial corporations is defined as gross fixed capital formation divided by gross value added; linking investment in fixed assets (such as buildings and machinery) to the value created during production. The investment rate fell in the final period of 2025 because gross fixed investment fell by -1.7% at the same time as gross value-added increased by +0.8%.
At this stage, only Eurozone data are available; EU-wide figures will be released at the end of the month. This release will also give us the annual figures up to and including 2025.
Full details are available from the Eurostat website’s News Release section at https://ec.europa.eu/eurostat/news/euro-indicators (09 April – it is the item titled “Household saving rate …”), or on request from MTA.