The euro area economy grew more slowly in the third quarter as France contracted and its exports and investment fell, leaving the bloc’s expansion uneven, official estimates showed Friday.
Eurostat’s preliminary GDP release put July-September growth at 0.4% from the previous quarter, after a 0.6% rise in April-June. Output across the bloc was 1.3% higher than a year earlier, up from 1.2% annual growth in Q2. The initial estimate may be revised as more national data arrive.
France’s output fell 0.1% after no change in Q2, Insee reported. Household consumption gained 0.4%, and inventory movements added 0.4 percentage point to growth. Exports fell 1.7% while imports rose 0.1%; the net trade effect was a 0.6-percentage-point drag on GDP. Fixed investment also declined 0.6%.
Among country estimates released alongside the euro area data, Spain expanded 0.6%, Germany 0.2% and Italy recorded no change. Ireland’s economy grew 5.5%, but Eurostat called that flash estimate experimental because it relied on incomplete data.
CNBC reported that a Reuters poll of economists had forecast 0.2% growth for the euro area in Q3.
An October survey by S&P Global also pointed to slower momentum: its eurozone output index eased to 51.9 from 53.1 in September. The index remained above 50, a signal of expansion, and the firm’s interpretation was that its reading aligned with GDP expanding 0.3% over the quarter. The early survey drew about 85% of the responses S&P Global typically receives. It is a separate measure from Eurostat’s official GDP estimate; EconoTimes previously covered the October PMI reading.
The European Central Bank kept rates on its deposit facility, main refinancing operations and marginal lending facility unchanged at 2.50%, 2.65% and 2.90%, respectively. Its Governing Council said rising energy prices posed risks of higher inflation and weaker growth.
Eurostat had data from 19 countries for the first estimate; those economies represented 96% of euro area GDP. It warned the preliminary total could be revised and scheduled another Q3 estimate for Nov. 13.
