Euro area Q2 GDP seen growing 0.3 pct quarter-on-quarter

Euro area’s second quarter GDP growth’s second estimate is likely to come is same as flash reading. According to the Societe Generale research report, the second estimate of the euro area’s second quarter economic growth is expected to confirm the flash estimate of 0.3 percent quarter-on-quarter.

The details of component will not be available before the end of this month; however, all the domestic demand’s components are expected to have taken a pause following three consecutive strong quarters.

The recent forward-looking indicators imply that the economic growth is expected to continue into the second half of 2016 at an annualized rate of 1.4 percent at least. The growth is likely to be led by domestic demand.

The growth in the currency bloc is expected to be stimulated by Spain’s strong performance (0.7 percent quarter-on-quarter). Meanwhile, France’s and Italy’s economic activity is likely to have remained flat in the quarter, whereas German economic growth is expected to have come in a tad below 0.3 percent quarter-on-quarter, noted Societe Generale.