EMU GDP Update


The euro-zone economy grew more rapidly than previously estimated in the three months to June, as a pickup in exports offset a slowdown in household consumption and a decline in investment spending.

The European Union’s statistics agency also raised its estimate for growth in the first three months of the year.Gross domestic product advanced 0.4 percent sequentially after rising 0.5 percent a quarter ago. The growth rate for the second quarter was revised up from 0.3 percent. Likewise, annual growth was raised to 1.5 percent from 1.2 percent for the June quarter. GDP climbed 1.2 percent in the first quarter.

The expenditure-side breakdown of GDP showed a 0.4 percent rise in household spending, while investment declined 0.5 percent. Government spending climbed 0.3 percent. Exports and imports grew 1.6 percent and 1 percent, respectively.

Its revisions mean the euro-zone’s modest recovery strengthened in the first half of the year, a development that may lead some members of the European Central Bank’s governing council to question the need for any further stimulus as it strives to raise the currency area’s inflation rate to its target of just under 2%.