The final euro area GDP growth data for the third quarter was released today, affirming the previous headline estimate that indicated that the rate of growth decelerated to 0.2 percent sequentially, matching the softest pace since the beginning of 2013.
To two decimal places there was a small downward revision, of 0.02 point to 0.16 percent quarterly. Thus, with similar modest revisions to the initial two quarters of the year, the annual rate of increase was 0.1 point lower than previously thought, at 1.6 percent year-on-year, down 0.6 point from the earlier quarter and bang consistent with the long-run average, noted Daiwa Capital Market Research in a report.
The expenditure breakdown added to the weak tone of the headline figures. Indeed, GDP growth was more than fully accounted for by stock-building, while final demand was disappointing. Private consumption rose just 0.1 percent quarterly, the weakest reading since early 2014, while government spending and investment did not contribute to growth.
With external demand weakening, net exports subtracted 0.3ppt, representing one of the largest drags on growth from trade in recent years”, stated Daiwa Capital Market Research.
At 19:00 GMT the FxWirePro's Hourly Strength Index of Euro was highly bullish at 120.158, while the FxWirePro's Hourly Strength Index of US Dollar was neutral at -28.241. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex
