Eurozone GDP grew 0.4% quarter on quarter in Q3, beating the 0.2% consensus but slowing from 0.6% in Q2. Germany lost some pace, France contracted 0.1%, and Italy stalled, so the expansion was uneven.
The eurozone economy expanded 0.4% q/q in Q3, according to Eurostat's preliminary flash estimate. That beat market expectations of 0.2%, though it slowed from 0.6% in Q2.
Annual GDP growth edged up from 1.2% to 1.3%. The headline suggests activity held up better than anticipated, but the slower quarterly pace and the gap between major economies point to an uneven expansion.
France contracts while Germany and Italy lose momentum
Germany's growth moderated from 0.3% to 0.2%. France, meanwhile, slipped from stagnation into a 0.1% contraction.
Italy also lost momentum, with growth slowing from 0.2% to zero. Spain continued to outperform, expanding 0.6% after 0.7% in Q2, and the Netherlands recorded the same quarterly growth rates.
Ireland's 5.5% jump comes with a caveat
Ireland posted another exceptionally large increase, 5.5% after 10.2% in Q2. However, Eurostat cautioned that its preliminary estimate is experimental and based on incomplete data.
ActionForex notes that the improvement was not broad-based. Germany expanded only modestly, while France and Italy showed little or no growth. In its reading, the eurozone avoided a sharper-than-expected slowdown in Q3 rather than showing a convincing acceleration across its major economies.
Flash estimate awaits revision
The release does not yet include an expenditure breakdown to identify the main sources of growth. The flash estimate is subject to revision, and the next release is due on November 13.
Source: ActionForex
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