According to figures from Eurostat, the business investment rate in the EU (new data) was unchanged from the 2nd quarter level at 22.2% but edged up in the Euro-zone to 21.7% (unchanged from the first data release two weeks ago). The rate of profitability improved slightly to 39.7% in the EU but fell marginally for the Euro-zone to 39.1% (also unchanged from the first data release).
The seasonally adjusted investment rate for non-financial corporations in the EU rounds to the same rate as it was in the 3rd quarter of 2025 but for the Euro-zone, the revised figures represent a small improvement over a year ago when the ratio was 21.5%. Despite the small quarter-on-quarter rise, the profit share in the EU is still below the equivalent figure for 2024 (40.1%); we see the same trend for the Euro-zone where the rate of profitability was 39.6% in the 3rd quarter of 2024.
The gross investment rate of non-financial corporations is defined as gross fixed capital formation divided by gross value added – this ratio relates investment in fixed assets (buildings, machinery etc.) to the value added created during the production process. This series can be distorted by imports of intellectual property products reflecting the impact of globalisation. In the Euro-zone, the investment rate edged up because gross fixed capital formation (+1.6%) grew a little more quickly that gross value-added (+1.2%).
The profit share of non-financial corporations is defined as the gross operating surplus divided by gross value added. This shows the share of the value added created during the production process remunerating capital and it is the ratio of the share of wage costs (plus other taxes minus other subsidies on production) in value added. In the Euro-zone, “business compensation of employees (wages and social contributions) plus taxes less subsidies on production” grew at the same rate (+1.2%) gross value added at the rounded level.
You can get the full details from the Eurostat article on their website at https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Quarterly_sector_accounts_-_non-financial_corporations or you can request it from MTA.