According to figures from Eurostat, the business investment rate in the EU (new data) fell to 21.8%, down from 22.3% in Q3; for the Euro-zone it fell from 21.9% to 21.3% (slightly lower than in the first data release last month). The rate of profitability in the EU was stable at 40.1% in the EU and 39.5% the Euro-zone (unchanged from the first data release).
The seasonally adjusted investment rate for non-financial corporations in the EU in the 4th quarter of 2025 was at its lowest since the 1st quarter of 2015, before investment started to recover after the Euro crisis. For the Euro-zone, the Q4-2025 reading is the lowest since the 3rd quarter of 2015. A year earlier (Q4-2024), the business investment rate in the EU was 22.3% and for the Euro-zone it was 21.6%.
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. The fall in the investment rate in the latest data was because gross fixed capital formation fell, while gross value-added increased.
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. This was stable because In the Euro-zone, “business compensation of employees (wages and social contributions) plus taxes less subsidies on production” grew at roughly the same rate as gross value added. 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.