Quarterly Sector Accounts - 1st quarter of 2017

Expenditure of households on consumption and investments were increasing

30.06.2017
Code: 050057-17
 

Household real income increased by 1.4% in the Q1 2017 and real consumption per capita increased by 2.7%, y-o-y. Profitability of corporations decreased by 0.7 p.p., y-o-y.



Non-financial corporations: profitability in the Q1 decreased, year-on-year

Profit rate1 in the Q1 2017 was 49.0%, which is by 0.7 p.p. less, y-o-y. The decrease in profitability of corporations is mainly due to an increase in wage costs, which grew by 6.4%, y-o-y. Investment rate2 decreased by 0.3 p.p., y-o-y, and reached 27.0%.  


Households: real income increased by 1.4% in the Q1

Household real income per capita3 increased by 1.4%, year-on-year, in the Q1. Household real consumption per capita4 grew faster, i.e. by 2.7%.

Average monthly income of households per capita in nominal terms5 was CZK 22 783; of that, CZK 3 911 consisted of individual services and goods6 provided by the general government and non-profit institutions serving households.

Average monthly income from employment7 reached CZK 29 313 in the Q1 and it increased in real terms by 3.2%, compared to the corresponding period of the previous year.  

Average monthly consumption of households per capita in nominal terms8 reached CZK 21 309.

Resulting from the faster growth of household expenditure compared to their income was markedly lower saving rate9 compared to the previous year, namely 9.1%. Investment rate in the household sector remained unchanged, year-on-year, i.e. it was 8.0%.

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At the same time, the estimate of the gross domestic product (GDP) has been refined. In the Q1 2017, the GDP increased by 1.5%, quarter-on-quarter, and by 3.0%, year-on-year. For the time series of GDP resources and uses see: https://www.czso.cz/csu/czso/hdp_ts.

Pursuant to the revision policy of the CZSO, annual national accounts have been refined; for more information see: https://apl.czso.cz/nufile/Comment_30_06_2017.pdf. In relation to that, also respective quarterly outputs have been unified.

 

Notes:
1.   The profit rate of non-financial corporations is defined as the gross operating surplus divided by the gross value added (B.2g/B.1g). The indicator refers to profitability of production factors from the production process.
2.   The investment rate of non-financial corporations is defined as the gross fixed capital formation divided by the gross value added (P.51g/B.1g). The indicator refers to the investments in non-financial assets (buildings, machinery etc.) divided by the value created during the production process.
3.   Household real income per capita is defined as the adjusted gross disposable income of households, in nominal terms, divided by the mid-year population and deflated by the deflator (price index) of household final consumption expenditure.
4.   Household real consumption per capita is defined as real household final consumption, in nominal terms, divided by the mid-year population and deflated by the deflator (price index) of household final consumption expenditure.
5.   Average monthly income of households per capita, in nominal terms, is defined as the adjusted disposable income of households divided by the mid-year population.
6.   Individual services and goods provided to households by the general government and non-profit institutions serving households (NPISHs) refer to the value of products and services provided in the form of health and social care, education, housing, and the like. They include especially benefits in kind related to health insurance (payments for health aids, medical and dental treatment, medical operations, and the like) paid by health insurance companies to providers of such goods and services. Social transfers in kind (D.63) further include benefits in kind provided by municipalities (including reimbursements for approved household expenditure for certain types of products and services) and all the value of non-market services of the general government and non-profit institutions serving households provided for individual consumption. The same value is imputed in the sector of households on the income side (adjusted disposable income) as well as on the expenditure side (real final consumption of households).
7.   Average monthly income from employment is defined as wages and salaries for the national economy (D.11) in average per month divided by the number of employees (full-time equivalent). The wages and salaries indicator includes all income from employment, namely in cash as well as in kind (employee benefits) regardless of whether they have been officially reported or not. The number of employees (full-time equivalent) includes all forms of employment, formal and informal. Various types of agreements are also included. The calculation does not include hours worked by working owners of enterprises, who are according to national accounts definitions included in the category of employees.
8.   Average monthly consumption of households per capita, in nominal terms, is defined as the real household final consumption divided by the mid-year population.
9.   Household saving rate is defined as the gross saving divided by the gross disposable income with inclusion of adjustment for net share of households in reserves of pension funds (B.8g/(B.6g+D.8)). Gross saving is part of gross disposable income, which has not been consumed in the form of final consumption expenditure.
10. Profit from foreign investment consists of dividends paid and of reinvested earnings. Dividends are related to the economic result (profit/loss) of the previous period and reinvested earnings are thus a supplement to the economic result (profit/loss) of the current period and may take a form of a loss (reach negative values). These two components in total are the profit belonging to foreign owners.

Contact person: Vladimír Kermiet, Director of the National Accounts Department, phone number (+420) 274 054 247, e-mail: vladimir.kermiet@czso.cz
Used data sources updated as at: 20 June 2017
Related CZSO website: https://www.czso.cz/csu/czso/quarterly-national-accounts-gdp-resources-and-uses-and-gdp-preliminary-estimate
Next Release will be published on: 3 October 2017 (Quarterly Sector Accounts for the second quarter of 2017)

Data of quarterly sector accounts are not seasonally adjusted and therefore cannot be compared quarter-on-quarter.

The news releases of Eurostat on quarterly sector accounts are published later. The latest published information for the fourth quarter of 2016 is available at:
http://ec.europa.eu/eurostat/web/products-press-releases/-/2-12042017-AP,
http://ec.europa.eu/eurostat/web/products-press-releases/-/2-12042017-BP,
http://ec.europa.eu/eurostat/web/products-press-releases/-/2-28042017-AP.

Quarterly sector accounts data are published on the CZSO website in the tables of Transactions in Products and Distributive Transactions by Sector: http://apl.czso.cz/pll/rocenka/rocenkavyber.kvart_qsa?mylang=EN
and Quarterly Non-Financial Sector Accounts (Current and Capital Accounts): 
http://apl.czso.cz/pll/rocenka/rocenkavyber.kvart_qsa_mat?mylang=EN

 

  •      acsu063017.doc

  • Annexes:
  • Table 1 Selected indicators of Quarterly Sector Accounts (seasonally not-adjusted data)
  • Table 2 Selected indicators of Quarterly Sector Accounts - y-o-y (seasonally not-adjusted data)
  • Graph 1 Average monthly income of households from employment – not seasonally adjusted
  • Graph 2 Real income and consumption expenditures of households – not seasonally adjusted
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Published: 30.06.2017
The data are valid as of the release date of the publication.


Contact: Information Services Unit - Headquarters, tel.: +420 274 056 789, email: infoservis@czso.cz