European Central Bank reports decline in euro area net saving to EUR 868 billion

The European Central Bank published revised euro area sector accounts for the second quarter of 2026, showing lower net saving and investment, alongside modest annual declines in household and corporate debt ratios. Net saving fell to EUR 868 billion, or 6.7% of net disposable income, in the four quarters to the second quarter, from EUR 895 billion in the preceding four-quarter period. Net non-financial investment declined to EUR 599 billion, driven by lower investment by non-financial corporations. With saving and investment falling by similar amounts, net lending to the rest of the world remained broadly unchanged at EUR 312 billion. The household debt-to-income ratio declined to 80.3% from 80.5% a year earlier. Household financial investment grew at an annual rate of 2.7%, while growth in investment in debt securities accelerated to 5.7% from 4.0% in the previous quarter. Separate wealth distribution data for the fourth quarter of 2025 showed annual increases in net wealth across all wealth groups, but inequality remained broadly stable, with a Gini coefficient of around 73%. The lowest wealth quintile continued to have negative average net wealth, at approximately EUR -4,000. For non-financial corporations, the consolidated debt-to-GDP ratio declined to 66.1% from 66.4% a year earlier, even as financing growth accelerated. Annual financing growth rose to 1.7% from 1.4% in the previous quarter, supported by faster growth in loans and debt securities. Loan financing growth increased to 3.2% from 2.4%, while growth in net issuance of debt securities rose to 4.4% from 3.7%.