Figures from Eurostat show that the business investment rate in the Euro-zone improved marginally to 21.7% in the 3rd quarter of 2025, but this remains low by historical standards. The profitability rate for non-financial corporations was slightly lower at 39.1%, extending its downward run to 10 quarters and reaching its lowest level since the start of the pandemic in Q2-2020.
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. In Q3-2025, the investment rate rose because gross fixed investment (+1.6%) increased slightly faster than gross value added (+1.2%).
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 changed by +1.2% compared to the previous quarter; this is the same rate as for gross value added but both of these are rounded, hence the marginal decline in the profit share figure.
At this stage, only Eurozone data are available; EU-wide figures will be released at the end of the month.
Full details are available from the Eurostat website’s News Release section at https://ec.europa.eu/eurostat/news/euro-indicators (13 January, listed under “Household saving rate …”), or on request from MTA.