Eurostat confirmed the eurozone economy expanded by 0.4% quarter-on-quarter in the second quarter, matching the preliminary estimate, while the first quarter was revised down to flat growth. Capital Economics said the currency area grew around its trend rate despite an energy shock tied to Middle East hostilities, with a third estimate due September 7.
Eurostat's second estimate on Friday confirmed the eurozone economy grew 0.4% quarter-on-quarter in the April-June period, unchanged from the preliminary reading.
Q1 growth revised down to flat
The second-quarter print came alongside a downward revision to the first quarter, which investinglive reported is now seen flat instead of the previously estimated 0.1% growth. Compared with the same quarter a year earlier, euro area GDP in Q2 2026 is seen growing by at least 1.0%.
Analysts at Capital Economics said the 21-member currency area continued to grow around its trend rate in the second quarter, despite headwinds from an energy shock sparked by ongoing hostilities in the Middle East. They expect eurozone GDP to keep growing at a moderate pace over the final six months of 2026.
Spending, jobs and productivity hold up
A breakdown for GDP at the eurozone level has yet to be published, but national figures indicate household spending increased. That could mean consumers pulled back on saving rather than reined in spending as their real incomes dwindled, according to Capital Economics.
Second-quarter employment in the eurozone is estimated to have risen 0.1% quarter-on-quarter, while productivity is seen increasing 0.3% and continuing that trend at the start of the current quarter, Capital Economics said.
Attention turns to the Middle East and the ECB
The GDP print is, by now, a lagging data point. Markets are instead turning their attention to renewed tensions in the Middle East, which are underpinning inflation risks and could pressure the ECB into acting faster, investinglive reported.
The third estimate of second-quarter eurozone GDP is due to be published on September 7.
Sources: Investing.com, Investinglive
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