Business investment rate in the euro area fell in the first quarter, while the profit share grew, the European Union statistical agency Eurostat said Thursday.
The seasonally adjusted gross investment rate of non-financial corporations was 20.2% in the first quarter down from 20.4% recorded in the fourth quarter of 2009. The decrease was due to gross fixed capital formation falling faster than value added. Stocks of materials, supplies and finished goods dropped for the fifth quarter in a row.
The gross profit share of non-financial corporations was 38% in the first quarter, compared with 37.7% in the previous quarter. Eurostat said the increase was due to compensation of employees plus taxes less subsidies on production falling faster than value added.
The seasonally adjusted gross investment rate of non-financial corporations fell to 19.7% in the EU27 from 20.1% in the previous quarter, the statistical agency said. The gross profit share 37% versus 36.9% in the final three months of last year.
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