Eurozone outpaces UK with fastest growth since 2011 –as it happened

A strong performance by France has helped the euro area post its strongest annual growth since the debt crisis in 2011

• Eurozone has posted another quarter of growth
• Eurozone has grown by 2.5% over the last year
• UK has only grown by 1.5% in the same time
• Eurozone jobless rate has fallen to lowest since 2009

Earlier:

• France grew by 2.2% over last year
• Newsflash: French GDP rose by 0.5% in the last quarter
• Consumer spending and business investment both jumped
• Experts: French recovery is on track

5.37pm GMT

Positive eurozone economic data in the form of strong third quarter growth figures and falling unemployment meant a fairly positive end to the month for European equities.

Most markets managed to close higher, although Germany's Dax was closed for a public holiday. In the US, investors were more focused on this week's Federal Reserve meeting than upbeat consumer confidence figures, but Wall Street still managed to make slight gains after an uncertain start.

3.47pm GMT

The continuing dispute between Spain and Catalan separatists should have no immediate effect on the country's sovereign debt ratings, says S&P Global.

The agency said that the "orderly application of Article 155 [removing Catalonia's regional government from office] and the frontloading of regional elections have reduced the likelihood of a short-term escalation of tensions."

As we expected, no national government has recognized Catalonia as an independent state. The most prominent credit risk we continue to see is that the related tensions could lead to a sustained drop in business and consumer confidence and potential business disruption from fourth-quarter 2017 onward, especially in Catalonia. While the economic consequences of these developments have yet to emerge, Spain's most recent economic data were positive. In third-quarter 2017, GDP growth remained robust at 0.8%, while the unemployment rate fell to 16.4%, the lowest level since 2008. This confirms our expectation of Spain's strong economic performance.

3.37pm GMT

US markets are more focused on this week's Federal Reserve meeting than the positive data we have seen today. Connor Campbell, financial analyst at Spreadex, said:

Despite a very good afternoon for data the Dow Jones and dollar were reticent to do much this Tuesday, investors holding back ahead of tomorrow's Fed statement.

The CB consumer confidence reading smashed expectations, coming in at 125.9 against the 121.1 forecast and the 120.6 seen in September (itself revised higher from the initial estimate). The Chicago PMI was also pretty muscular; at 66.2 it hit its best level in around 3 years.

3.05pm GMT

Over in Greece, and there is some good news for the country from this morning's eurozone jobs figures. Helena Smith reports:

Greek unemployment dropped to 21 % in July [the latest data available] according to the European statistics agency (Eurostat), with the number of jobless Greeks at 1.01m. Of that number 17.5 % were men and 25.3 percent women, it said.

At the height of Greece's debt crisis four years ago, unemployment nudged 28 % spurring a massive exodus of hundreds of thousands of qualified Greek abroad.

2.34pm GMT

More on the UK crackdown on fixed-odds betting terminals in bookmakers shops.

Here's our latest report from Rob Davies:

Related: Crackdown on fixed-odds betting terminals unveiled

2.23pm GMT

US investors seem to be playing its safe ahead of this week's Federal Reserve meeting.

Despite further upbeat trading statements from the likes of Kellogg and Mastercard, the Dow Jones Industrial Average is virtually unchanged, down 0.74 points, while the S&P 500 has edged up 0.16% and the Nasdaq Composite has slipped 0.01%.

2.14pm GMT

On the confidence figures, Lynn Franco, director of economic indicators at the Conference Board, said:

Consumer confidence increased to its highest level in almost 17 years (Dec. 2000, 128.6) in October after remaining relatively flat in September. Consumers' assessment of current conditions improved, boosted by the job market which had not received such favorable ratings since the summer of 2001. Consumers were also considerably more upbeat about the short-term outlook, with the prospect of improving business conditions as the primary driver. Confidence remains high among consumers, and their expectations suggest the economy will continue expanding at a solid pace for the remainder of the year.

2.03pm GMT

Over in the US, and consumers were more confident than expected in October.

The Conference Board's consumer confidence index came in at 125.9, better than the 121 figure forecast by analysts. It was also higher than September's 120.6, itself revised upwards from 119.8, and the best level since December 2000.

1.37pm GMT

Right, time for a quick recap....

The Eurozone is on track to grow faster than America and the UK this year, after reporting better-than-expected growth figures over the last quarter.

ING Bank 1/2: An impressive report card for the Eurozone economy as GDP growth comes in at 0.6% QoQ and the unemployment rate drops to 8.9%.

"It is easy for businesses to fall into the trap of over-cautiousness when the UK's own growth rate is slower, but capitalising on Eurozone successes now will help companies to secure their future.

Businesses can and should be doing as much as they can to drive up productivity and activity through positive investment in both people and assets, taking advantage of positive economic conditions to help them navigate successfully through times of uncertainty, and emerge in a position of strength."

1.21pm GMT

Hello..... sterling is suddenly pushing higher against the euro.

The pound has gained almost 0.5% against the single currency to a one-month high of a1.138.

pushing up #GBP

BARNIER SAYS HE'S READY TO SPEED UP NEGOTIATIONS

12.41pm GMT

Newsflash: Canada's economy unexpectedly contracted, a little, in August.

#Canada #GDP month-on-month at -0.1% https://t.co/3lZfCVUTCg pic.twitter.com/bYiaFymVi9

Canada GDP miss - loonie hit pic.twitter.com/PWq2QkxiTi

12.23pm GMT

High street retailer John Lewis has fuelled worries about UK consumer spending, by posting its fifth weekly fall in sales in a row.

12.01pm GMT

Not only is the eurozone enjoying faster growth than Britain, it's also experiencing less inflation.

The consumer prices index, which tracks the cost of living, rose by just 1.4% per annum this month, according to new data released this morning. That's down from 1.5% in September.

Eurozone grows faster than expected at 2.5% y/y in Q3, jobless rate below 9% for 1st time in almost 9 yrs... but inflation slows https://t.co/g3FDCfDi3o pic.twitter.com/ISIlc2oJwM

11.14am GMT

It may be Halloween, but there's nothing scary in today's eurozone growth figures, says Kathleen Brooks of City Index:

Eurozone growth is pretty broad-based right now, adding weight to the argument that the Eurozone's economic recovery is well entrenched. Spain, for all of its political woes related to Catalonia's bid for independence, posted a 3.1% GDP rate for Q3, while France saw growth beat expectations and reach 2.2% for last quarter.

We are still waiting to hear about growth rates in other major nations such as Germany and Italy, if they can post rates around this level then the mood music in Brussels is likely to be good.

11.00am GMT

The eurozone economy is benefitting from strong domestic demand, thanks to record low interest rates, says Raj Badiani, director at IHS Markit:

Households are experiencing a more supportive climate, characterized by still-cheap credit, while lower-than-expected inflation rates have limited the anticipated squeeze on household purchasing power during second and third quarters.

Additionally, still-rising employment and a retreating unemployment rate have lifted both household confidence and spending across the region in the first three quarters of 2017.

10.50am GMT

We've plotted the eurozone's quarterly growth figures alongside the UK's own GDP figures, to show how Europe powered ahead this year.

10.41am GMT

The long-awaited fall in eurozone unemployment is helping to drive growth this year, says Danielle Haralambous of the Economist Intelligence Unit.

Raft of #eurozone data out this morning: Q3 GDP up by 0.6%, annual growth rate up at 2.5%. Raises upside risks to our 2017 estimate of 2.2%. pic.twitter.com/jUXpeutHxd

Labour market improvement is a big part of the bloc's recovery; unemployment rate has fallen below 9% for the first time since Jan 2009. pic.twitter.com/nwJl7Ov4W7

10.31am GMT

Ulster Bank's economists say the eurozone recovery is stronger than expected:

Eurozone GDP rose 0.6% q/q & 2.5% y/y in Q3, a touch stronger than expected & providing new evidence of ongoing robust momentum pic.twitter.com/jioOvnITGk

The eurozone extends its GDP growth rate lead over the UK. My @TheIndyBusiness report: https://t.co/XoKTGWwE4Q pic.twitter.com/4r1Mi0yvLj

Euro area GDP a decent +0.6% in Q3. Now looks as if eurozone growth in 2017 could outpace that in the US for the 2nd year running"

10.15am GMT

The eurozone has just posted its fastest annual growth rate since the beginning of the debt crisis, partly due to France's strong performance.

The euro zone economy grew at an annual rate of 2.5% in Q3, the highest rate since Q1 2011.

10.04am GMT

Breaking! The eurozone grew by 0.6% in the third quarter of this year.

That's a stronger reading than expected. In another boost, growth in the second quarter has been revised up to 0.7%, from 0.6%.

Euro area #GDP +0.6% in Q3 2017, +2.5% compared with Q3 2016: preliminary flash estimate from Eurostat https://t.co/1fE3UuAXNy pic.twitter.com/d1MGiMEseI

Euro area #Unemployment at 8.9% in September; lowest rate since Jan 2009. EU at 7.5% - lowest since Nov 2008 https://t.co/ZbLsME35t5 pic.twitter.com/QVqWx925gV

9.55am GMT

Newsflash: Fashion chain Burberry have just announced that its chief creative officer, Christopher Bailey, is leaving.

9.46am GMT

In other news, the UK government has outlined its plans to protect gamblers from fixed-odds betting terminals.

Under the plan, the maximum bet could be cut from 100 to just 2 (or possibly to 50, which seems rather less radical)....

Related: Crackdown on fixed-odds betting terminals unveiled

9.31am GMT

Here's another neat chart, which suggests France's economy has shifted into a higher gear:

Regime shift for French GDP growth. Now above 2% on a 4-quarter annualised rolling basis. pic.twitter.com/LcRMoqazJc

We think the French economy is poised to grow solidly next year, projecting 1.9% (consensus: 1.7%), with investment likely to provide increasing support to private consumption, the main growth engine.

ICYMI! #France's economy grew 2.2% YoY in Q3, more than expected and fastest in more than six years! pic.twitter.com/ACXQunQ5Zj

Q3 GDP annual growth rates:
-France 2.2%
-UK 1.5%

9.20am GMT

Richard Turnill, BlackRock's global chief investment strategist, is concerned that the UK is lagging behind other advanced economies such as France.

He believes Brexit uncertainty is weighing the economy down, meaning Britain faces a 'tough slog'.

The UK's muted growth outlook stands in stark contrast to 2016, when the UK sat close to the top of G7 growth charts alongside Germany.

Brexit negotiations in particular are weighing on the UK economy. Significant progress on three key issues is needed for discussions to move on to the post-Brexit trade relationship between the UK and European Union (EU): the rights of EU citizens in the UK and vice versa, the UK's financial obligations to the EU, and the Irish border.

8.36am GMT

Reuters have a good first take on this morning's French growth figures, for anyone just tuning in:

The French economy grew 0.5% in the third quarter from the previous three months as consumer spending picked up and investment remained robust, the INSEE national statistics agency said on Tuesday in a first estimate.

The result, which was spot in line with a Reuters poll of 27 analysts, meant gross domestic product (GDP) expanded by 2.2% over a year, the fastest pace of growth since 2011.

8.22am GMT

Barclays have also hailed France's growth performance:

France Q3 GDP +0.5%, giving annual growth of 2.2%, the best since 2011. "French GDP growth has shifted up a gear," says Barclays.

8.10am GMT

Newsflash: Austria's economy grew by 0.8% in the third quarter of this year.

That matches the country's growth rate in the second quarter, and is a pretty decent result.

#Austria #GDP Growth Rate QoQ Flash at 0.8% https://t.co/pAKTuooPJW pic.twitter.com/RXiDE6PjiT

#Austria #GDP Growth Rate year-on-year Flash at 2.6% https://t.co/4hDnbjmUod pic.twitter.com/doYEHI4cfv

8.03am GMT

Holder Sandte, economist at Nordea Markets, believes France's domestic economy strengthened over the summer:

Finally domestic demand in France firmed in Q3. Net trade just dives from time to time, it seems https://t.co/q31XY7TB2c

French #GDP growth and INSEE - the long-run pic. Growth peak at 2% y/y would be pretty low pic.twitter.com/YA5XmRWWIA

7.32am GMT

Today's report is fresh confirmation that France's economy has outperformed the UK this year

French GDP grew by 0.5% in the first quarter of 2017, then 0.6% in Q2, and then 0.5% in Q3.

FRANCE gaining traction: decent 0.5% GDP growth in Q3 + Q2 revised up to 0.6% + investment accelerating. Pas mal! https://t.co/kc3AkivACB pic.twitter.com/gK2bS6Zwvh

7.00am GMT

INSEE says that France's annual growth rate, of 2.2%, is the strongest since 2011 -- when the eurozone debt crisis was exploding.

6.53am GMT

Bloomberg's Mark Deen is impressed by France's performance over the last year:

France showing strong growth numbers -- 5th straight quarter of expansion. 2nd qtr revised up. Strongest year-on-year growth since 2011.

France's steady, solid quarterly growth in a chart. (Tks @ZSchneeweiss & @fergalob) pic.twitter.com/CReRKfSbOm

Strong and stable French GDP, up by 0.5% QoQ in Q3, after an upwardly revised 0.6%. Investment +0.8% after +1.0%. https://t.co/7RiYLBbtXo

Solid French GDP report. Forget about inventories and net trade; they usually move opposite due to stock imports in aerospace. 1/2

These data suggest the French economy now is going toe to toe with Germany. It's been a while since we have been able to say that! 2/2

6.49am GMT

Today's growth report shows that French household spending accelerated in the last three months, from 0.3% to 0.5%.

Businesses also kept spending on new machinery and equipment; 'gross fixed capital formation' rose by 0.8% during the quarter.

6.37am GMT

BREAKING: France's economy grew by 0.5% in the third quarter of 2017.

That's the fifth quarter of growth in a row, as the French recovery continues to gather pace.

#France #GDP Growth Rate QoQ 1st Est at 0.5% https://t.co/YZQGQp1rmQ pic.twitter.com/Thyi3PrEr4

French GDP Data (Q3 A):
Q/Q +0.5% versus +0.5% expected, previous +0.5% revised to +0.6%
Y/Y +2.2% versus +2.1% expected, previous +1.8%

6.28am GMT

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

The bigger picture behind the #Catalonia crisis: Spain grew by 0.8% over Q3, confirming the strong growth momentum. https://t.co/uNtOHVvpmU pic.twitter.com/4mObYlR1zc

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Despite the fallout from a new series of political surprises across Europe, the Teflon rally that we've seen since the beginning of the year shows no signs of slowing down apart from the occasional pause, with markets across Europe set to post significant gains in another good month for stocks.