Eurozone Q2 GDP Growth Confirmed at 0.4%

The Eurozone economy expanded 0.4 percent on quarter in the three months to June 2018, unrevised from the second estimate and the same pace as in the previous period.
Eurostat | Joana Ferreira | 9/7/2018 9:53:25 AM
From the expenditure side, positive contributions to GDP growth came from gross fixed capital formation (0.3 percentage points), household final consumption expenditure (0.1 percentage points), government spending (0.1 percentage points) and inventory changes (0.1 percentage points). By contrast, net trade subtracted 0.2 percentage points to GDP growth.

Fixed investment jumped by 1.2 percent in the second quarter, following a 0.3 percent gain in the previous period. In addition, household consumption rose by 0.2 percent (vs 0.5 percent in Q1) and government spending increased by 0.4 percent (vs 0.1 percent in Q1). On the other hand, imports climbed by 1.1 percent, after a 0.3 percent decrease in the previous period, while exports advanced at a slower 0.6 percent, compared with a 0.7 percent drop in Q1.

From the production side, industry output expanded by 0.2 percent (vs -0.7 percent in Q1), boosted by manufacturing (0.4 percent vs -0.8 percent). Also, construction advanced by 0.6 percent (vs 0.9 percent in Q1). Among services, output rose for: trade, transport, accommodation and food service activities (0.5 percent vs 0.7 percent); information and communication (0.6 percent vs 2 percent); financial and insurance activities (0.2 percent vs -0.3 percent); real estate activities (0.1 percent vs 0.5 percent); professional and support service activities (0.7 percent vs 0.9 percent); administration and other public services (0.3 percent vs 0.5 percent); and arts, entertainment and other services (0.1 percent vs 0.4 percent).

Among countries for which data is already available, the GDP growth picked up in Germany (0.5 percent vs 0.4 percent), the Netherlands (0.7 percent vs 0.6 percent), Belgium (0.4 percent vs 0.3 percent), Portugal (0.5 percent vs 0.4 percent), Estonia (1.4 percent vs 0.2 percent), Malta (1.9 percent vs 0.9 percent), Slovenia (0.8 percent vs 0.5 percent) and Slovakia (1.1 percent vs 1 percent). Meanwhile, economic growth was unchanged in France (at 0.2 percent) and Lithuania (at 0.9 percent); and slowed in Italy (0.2 percent vs 0.3 percent), Spain (0.6 percent vs 0.7 percent), Finland (0.3 percent vs 1.2 percent), Austria (0.5 percent vs 0.9 percent), Greece (0.2 percent vs 0.9 percent), Latvia (0.9 percent vs 1.5 percent) and Cyprus (0.8 percent vs 1 percent). 

Compared with the same quarter of the previous year, the Euro Area economy expanded 2.1 percent in the second quarter, slightly below a second estimate of 2.2 percent and after a downwardly revised 2.4 percent growth in the previous period. 

Considering the European Union as a whole, GDP growth was unchanged at 0.4 percent quarter-on-quarter; and eased to 2.1 percent year-on-year (vs 2.3 percent in Q1).

Eurozone Q2 GDP Growth Confirmed at 0.4%