Euro zone Q2 growth revised up, supported by household spending
Euro zone economic growth was stronger than previously estimated in the second quarter, data showed today.
Today’s figures show that household spending recovered after a half of year of stagnation despite the squeeze on disposible income from spiraling inflation.
The European Union’s statistics office Eurostat said gross domestic product in the 19 countries using the euro rose by 0.8% quarter-on-quarter and by 4.1% from a year earlier.
In mid-August, Eurostat had estimated figures respectively of 0.6% and 3.9%.
While Germany registered nearly no growth, France expanded by 0.5% from the previous quarter and both Italy and Spain by 1.1%. Growth was strongest in the Netherlands at 2.6%.
Some countries, such as Finland and Portugal, revised up their growth estimates, while Ireland and Greece reported solid expansion after having no estimates in mid-August.
Eurostat said that household spending contributed 0.6 percentage points to the euro zone growth figure after zero for the previous two quarters. Government spending contributed 0.1 percentage points and capital formation 0.2.
External trade’s contribution was a negative 0.1 percentage points, Eurostat added.
Meanwhile, euro zone employment rose by 0.4% on a quarterly basis and rose by 2.7% year-on-year in the second quarter, Eurostat said today, revising its earlier estimate for the quarter-on-quarter figure and revising its earlier estimate for the year-on-year figure.
According to a Reuters poll, employment had been expected to rise 0.3% quarter-on-quarter and rise 2.4% year-on-year.