Quarterly Sector Accounts - 3. quarter of 2016

Household consumption as well as investment expenditure increased

06.01.2017
Code: 050057-16
 

In the Q3 2016, profitability of corporations decreased by 2.2 percentage points (p.p.), year-on-year (y-o-y), namely to 49.6%. Household real consumption per capita increased by 2.3%, y-o-y; it is by 1.2 p.p. higher growth rate in comparison to the growth of real income.


Non-financial corporations: profitability decreasing, year-on-year, due to growth of wages and salaries

Profit rate1 in the Q3 2016 dropped to 49.6%, which is by 2.2 p.p. down, y-o-y. The decrease in profit rate of corporations is mainly due to high y-o-y growth of wage costs, in nominal terms by 7.1%. Investment rate2 remained unchanged, y-o-y, i.e. on the level of 29.0%.  


Households: real income increased by 1.2%

Household real income per capita3 increased by 1.2%, year-on-year. Household real consumption per capita4 grew with approximately a 1.2 p.p. higher growth rate, i.e. by 2.3%.

Average monthly income of households per capita in nominal terms5 was CZK 23 324; of that, CZK 3 962 consisted of individual services and goods6 provided by the general government and non-profit institutions serving households.

Average monthly income from employment7 reached CZK 27 894 in the Q3 and it increased in nominal terms by 4.0%, y-o-y; in real terms it was by 3.2%.  

Average monthly consumption of households per capita in nominal terms8 reached CZK 21 406.

Resulting from the faster growth of household expenditure compared to their income was a lower saving rate9 compared to the previous year, namely 11.4%. Investment rate in the household sector, on the contrary, increased to 9.7%, year-on-year.


At the compilation of sector accounts for the Q3 2016, also new data for the general government sector were included, which had no impact on the gross domestic product (GDP) growth rate. For the time series of GDP resources and uses see: https://www.czso.cz/csu/czso/hdp_ts.

 

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.

 

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: 19 December 2016
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: 31 March 2017 (Quarterly Sector Accounts for the fourth quarter of 2016)

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 second quarter of 2016 is available at:
http://ec.europa.eu/eurostat/documents/2995521/7682100/2-11102016-AP-EN.pdf
http://ec.europa.eu/eurostat/documents/2995521/7682115/2-11102016-BP-EN.pdf
http://ec.europa.eu/eurostat/documents/2995521/7721740/2-28102016-AP-EN.pdf

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

 

  •      acsu010617.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 per employee development, not seasonally adjusted
  • Graph 2 Real income and household consumption per capita development, not seasonally adjusted
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Published: 06.01.2017
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