Quarterly Sector Accounts - 2nd quarter of 2015

In the Q2 2015, profitability of enterprises increased to 50.0%, which is by 0.3 p.p. more, year-on-year. Real household consumption per capita increased by 3.3%, y-o-y, which is by 0.1 p.p. lower growth rate when compared to the growth of real income.

Non-financial corporations: profitability is growing

Profit rate¹ increased in the second quarter of 2015 to 50.0%, which is by 0.3 p.p. more, y-o-y. It was thus already on the level as before the crisis. Investment rate² increased by 1.8 p.p., y‑o-y, and reached 30.5%.

Households: real income increased by 3.4%

Household real income per capita³ increased by 3.4%, year-on-year. Household real consumption per capita⁴ grew with a 0.1 p.p. lower growth rate, i.e. by 3.3%.

Average monthly income of households per capita in nominal terms⁵ was CZK 21 960; of that, CZK 3 700 consisted of individual services and goods⁶ provided by the general government and non-profit institutions serving households.

Average monthly income from employment⁷ reached CZK 26 737 in the Q2 and it increased in real terms by 2.5%, y-o-y.

Average monthly consumption of households per capita in nominal terms⁸ reached CZK 20 333.

Resulting from that was the saving rate⁹ of 10.2%, which is by 0.5 p.p. higher, y-o-y. On the other hand, the investment rate in the household sector decreased to 6.9%, y-o-y.

At the same time, the estimate of the gross domestic product (GDP) has been refined, because of new data for the general government sector, especially taxes on products. The GDP for the second quarter of 2015 increased by 4.6%¹⁰, y-o-y, and 1.1%, q-o-q. For the time series of GDP resources and uses see: https://csu.gov.cz/produkty/hdp_ts.

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 expenditure, 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 savings 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 savings are part of gross disposable income, which has not been consumed in the form of final consumption expenditure.
10. Seasonally and working day adjusted data.

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

The news release of Eurostat on quarterly sector accounts is published later. The latest published information for the first quarter of 2015 is available at:
http://ec.europa.eu/eurostat/web/products-press-releases/-/2-13072015-AP  
http://ec.europa.eu/eurostat/web/products-press-releases/-/2-13072015-BP
http://ec.europa.eu/eurostat/web/products-press-releases/-/2-29072015-AP

Quarterly sector accounts data are published on the CZSO website in the tables of S1 Transactions in Products and Distributive Transactions by Sector and S2 Quarterly Non-financial Sector Accounts (Current and Capital Accounts):  https://csu.gov.cz/produkty/hdp_ts .