Eurozone GDP: Growth slows to just 0.3% - as it happened
Disappointment as Germany, France and Italy only post modest growth, while Portugal stagnates and Finland's decline continues
- Latest: Eurozone GDP misses expectations
- France returns to growth... but analysts aren't impressed
- Germany hit by global problems
- Italy's growth slows to 0.2%
- Finland's GDP shrinks again
1.42pm GMT
Rather like April Fool's Day, eurozone GDP day is best enjoyed before lunchtime. So here's a summary:
The eurozone economy is flying on one engine says Barclays. https://t.co/9cxVTgIELW
Euro area GDP +0.3% in Q3 2015, +1.6% compared with Q3 2014 #Eurostat - https://t.co/t83KcLWq89 pic.twitter.com/zwRG0uzVJh
Following today's ELSTAT figures, #Eurobank Research sees #Greece 2015 real GDP growth between -0.5% & 0%. #economy #euro #ec #imf #markets
12.39pm GMT
A double helping of haluAky to Slovakia, which was the fastest-growing member of the eurozone in the last quarter.
But it's cold potatoes for Finland, which posted the worst performance - even worse than a Greek economy gripped by capital controls:
12.06pm GMT
Here's our news story on today's GDP figures (to save new readers scrolling back to 6.15am onwards):
The eurozone's economy lost steam in the latest quarter as Portugal stalled, Germany slowed and debt-stricken Greece contracted.
Gross domestic product (GDP) across the 19 countries in the single currency bloc rose just 0.3% in the third quarter, according to Eurostat. That defied expectations for growth to hold at 0.4%, according to a Reuters poll of economists. On a year earlier, GDP was up 1.6%, lower than forecasts for 1.7%.
Related: Eurozone recovery loses steam as Germany slows
11.38am GMT
European stock markets have been hit by the news that growth slowed across the eurozone in the last quarter.
The main indices are all in the red, adding to yesterday's selloff:
Joining a decent French figure and sliding Germany growth were misses by Italy and the Netherlands. Even worse were the performances from Portugal and Finland; the former, so often pointed to as one of the region's post-crisis success stories, saw no growth at all in the third quarter, whilst the latter, increasingly becoming one of the Eurozone's most rotten appendages, actually saw its GDP contract by 0.6%.
Given region's general malaise, the Eurozone as a whole was arguably lucky only to see a 0.1% decline quarter-on-quarter, with its Q3 figure coming in at a forecast-missing 0.3%. Understandably investors weren't too pleased with these results, meaning even the spectre of more ECB QE (the likelihood of which only increased with this morning's figures) couldn't drag the DAX and CAC out of the red.
11.12am GMT
This chart shows how Italy, Portugal and the Netherlands all missed expectations this morning, dragging the eurozone growth rate down (via Bloomberg)
10.54am GMT
At just 0.3%, the eurozone economy isn't growing fast enough to pull unemployment down and drive demand, as Bloomberg economist Maxime Sbaihi explains:
Today's GDP figures show that the euro area is growing but taking up slack too slowly. That's why #ECB is contemplating adding more stimulus
10.48am GMT
The weakness of the eurozone recovery adds "to the already strong case for the ECB to step up monetary stimulus in December," says Nick Kounis, head of macro research at ABN Amro Bank.
Kounis added that while Europe's domestic economy is doing well, it is suffering from weak world trade and deteriorating export markets.
10.42am GMT
Cyprus has posted another quarter of growth, as its recovery from its 2013 bailout trauma continues.
Cypriot GDP rose by 0.5% in July-to-September, matching the growth in April-June.
10.27am GMT
The eurozone's recovery has " disappointingly lost momentum for a second successive quarter", says Howard Archer of IHS Global Insight.
The third-quarter slowdown in Eurozone GDP growth appears to have been largely the consequence of negative net trade (this was certainly true of Germany, France and Italy).
This suggests that the benefit to Eurozone exporters coming from the weak euro was offset by muted global growth. Meanwhile, relatively decent Eurozone domestic demand supported imports.
10.24am GMT
This chart shows how Greece's economy went into reverse in the last quarter:
10.13am GMT
Euro zone GDP growth 0.3% in Q3, missing 0.4% expectation. Biggest downside miss - Portugal Biggest upside surprise - Greece
10.11am GMT
Today's figures also show that Greece's faltering recovery has been wiped out in the last three months.
One Eurozone country surprises to the upside: #Greece economy shrank 0.5% in 3rd quarter but less than expected -1%. pic.twitter.com/D6Gzfx1Ymo
10.03am GMT
Breaking: The eurozone economy grew by just 0.3% in the third quarter of the year.
That's a slowdown on the 0.4% recorded three months earlier, showing that Europe's recovery remains fragile and lacklustre despite the huge stimulus measures launched by the European Central Bank this year.
eurozone gdp misses expectations and grows 0.3% in Q3 after 0.4 in q2 pic.twitter.com/0nkIwwHo3r
9.59am GMT
#Portugal & #Italy Q3 GDP data disappointing. Italian economy losing steam, while Portuguese econ falls flat. #Greece data due in 2 mins.
9.58am GMT
More bad news for Portugal. Zero growth in Q3. (chart via @SoberLook) pic.twitter.com/OIKBccLDB8
9.50am GMT
Brussels officials have pointed to Portugal as an example that tough fiscal consolidation can deliver results. Today's disappointing (no) growth figures may prompt a rethink....
Growth in Portugal, the euro zone's poster child for reform and austerity, evaporates in Q3. GDP 0.0% vs +0.4% forecast.
9.46am GMT
More gloom. Portugal's recovery ran out of steam in the last quarter, just as its political crisis escalates.
Comparing with the second quarter, GDP registered a null change rate in real terms in the third quarter (0.5% in the second quarter).
The contribution of domestic demand was negative, mainly due to the reduction of Investment, while net external demand contributed positively, with Imports of Goods and Services decreasing more intensely than Exports of Goods and Services.
9.17am GMT
We now have to wait until 10am GMT for the official eurozone-wide GDP reading for July-September.
But it's already clear that this wasn't a great quarter for Europe, with a weak trade performance dragging back the three largest eurozone economies.
Slight disappointment in Italy and in the Netherlands means Eurozone GDP likely to grow by 0.3% QoQ only in Q3.
Lacklustre GDP figures out of France, Germany & Italy piles the pressure on #Draghi to increase stimulus
9.06am GMT
Here comes Italy's GDP report....and it's weaker than hoped.
The Italian economy grew by just 0.2% in the third quarter of 2015, dashing expectations of a 0.3% expansion.
*ITALIAN ECONOMY GREW 0.2% IN THIRD QUARTER VS 0.3% ESTIMATE
#Italy disappints: GDP grew 0.2% in 3rd quarter, missing estimate of 0.3%. Growth slows from 0.4% in Q1 & 0,3% in Q2 pic.twitter.com/kW52AL7DzO
8.46am GMT
Finland's economy has now been locked in a painful downturn for the last three years, as this chart from Statistics Finland shows:
Finland is used to cold, dark winters, and the experience could stand it in good stead as the Nordic country's bitter economic cold snap shows no sign of a thaw.
8.42am GMT
Evidence coming from the individual countries releases so far is Eurozone GDP growth in Q3 was held back appreciably by negatibve net trade
8.38am GMT
Next up, the Netherlands.... and its economy struggled to grow in the last quarter.
Netherlands Q3 yearly GDP growth at 1.9%, lower than BBG survey expectation of 2.2%
8.32am GMT
Finland has cemented its growing reputation as one of Europe's most ailing members.
8.19am GMT
#Hungary's lower-than-expected 3Q GDP growth is fuelled by car making, trade and tourism services, statistics office says.
8.13am GMT
Slovakia has outpaced its larger neighbours to the west, with growth of 0.9% in the last three months. That's up from 0.8% in the second quarter.
8.11am GMT
The Czech Republic has beaten expectations, with growth of 0.5% in the last quarter.
8.09am GMT
City analysts have been chewing through France's GDP figures, and they're not too impressed.
RBC is concerned that inventory-building by companies provided much of the growth:
RBC on #France: Only volatile inventories prevented outright contraction, given that net trade shaved off -0.7pp from top-line growth.
Barclays: French GDP data indicate that #France's growth remains moderate, but nonetheless fragile. pic.twitter.com/xNkHjyKqbw
8.06am GMT
More data. Hungary has missed forecasts by posting annual growth of 2.3% in the last quarter, down from 2.7% three months earlier.
On a quarter-on-quarter basis, Hungary (which isn't in the eurozone) grew by 0.5%.
7.56am GMT
Germany's economy would be in a worse state if consumers weren't benefiting from cheaper energy costs, points out Holger Sandte of Nordea Markets.
Without cheap oil, #Germany's #GDP would probably stagnate. +0.3% q/q in Q3, driven by consumers pic.twitter.com/Y6ngAbIXaA
7.45am GMT
This morning's figures show that Britain has outpaced its two largest European rivals in the last quarter.
UK GDP grew by 0.5% between July and September, data released last month showed.
7.43am GMT
Germany's Statistics Office says that domestic spending was a key driver of growth, while overseas demand for German exports lagged behind:
"Private and public consumption both increased."
"According to preliminary estimates, growth was held back by foreign trade because imports rose far more strongly than exports."
7.23am GMT
Germany's economy has been dented by problems overseas, says Carsten Brzeski of ING.
Here's his quick take on today's growth figures:
The summer weakness of the German industry seems to be more substantial than only a vacation-driven soft spell. The turmoil in emerging markets and the Chinese slowdown have finally left some marks on the German economy.
More generally, the German industry has not managed to accelerate and shift up one gear. Somehow, the weak euro and extremely favourable financing conditions have not fully deployed their full impact on the industry, yet. This is partly the result of weakening external demand but also still the structural lack of investment incentives and projects.
German consumers defy external woes. A quick take on German GDP data. https://t.co/V5ETEg6dxk
7.17am GMT
No details for German GDP. Stats office says "positive contributions were made mainly by domestic final consumption" but NOT foreign trade.
7.15am GMT
This German GDP report "isn't overwhelming", says Bloomberg's Hans Nichols, but at least the its economy is still growing.
The slight slowdown in the last quarter suggests Germany has been hit by problems in emerging markets such as China.
7.03am GMT
Here comes Germany's GDP data.... and it shows that Europe's largest economy grew by 0.3% in the last quarter.
6.58am GMT
French finance minister Michel Sapin has welcomed today's GDP data.
He told AFP newswires that France has escaped a long period of very low growth.
Michel Sapin i l'AFP > "Nous sommes sortis de cette trop longue pi(C)riode de croissance extrimement faible" pic.twitter.com/kbFo9ES77h
6.54am GMT
Some reaction to the French GDP report:
FRANCE: Q3 GDP +0.3%, as expected. Same old story: household consumption up, investment stable (but not declining!) pic.twitter.com/LnX49jtwzI
Ugly net trade data in French GDP, brace for German release in a few. It will be a stinker I think.
6.46am GMT
France's return to growth was driven by household spending (up 0.3%) and business investment (up 0.7%).
But the trade picture is quite ugly. Exports fell by 0.6%, while imports grew by 1.7%.
6.44am GMT
Bloomberg TV flags up that the French economy has generally been sluggish over the few quarters, apart from a healthy bounce at the start of this year:
6.38am GMT
France's economy is now 1.2% larger than a year ago, slightly better than the 1.1% annual growth economists expected.
6.36am GMT
#France kicks off Super GDP Friday w/ decent numbers. French 3Q GDP grew +0.3% on quarter as exp after 0% in Q2.
6.33am GMT
France has got eurozone GDP day up and running by returning to growth.
French economy resumes steady uptick with GDP +0.3% in 3Q. Business investment and consumer spending main drivers of growth. @Min_Finances
10.41pm GMT
Hang out the bunting and put on the party hats, folks. It's eurozone GDP day!
We're about to discover how countries across Europe performed in the third quarter of 2015, from heavyweights like Germany and France to smaller members like Slovakia and Portugal.
It's Q3 GDP #SuperFriday in the euro area! 1st in line is France (6.30am), followed among others by Germany (7am) & Italy (9am). Stay tuned!
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