Consumption in Eurozone
Eurozone - Consumption
Complete data confirms steady growth in Q2
The third estimate of GDP for the second quarter released by Eurostat confirmed that soft momentum at the start of the year carried over into the second quarter. GDP increased a seasonally-adjusted 0.4% in Q2 over the previous quarter, matching Q1’s result but notably below the vigorous 0.7% growth seen throughout most of 2017. The result matched the second preliminary estimate.
Internal dynamics were mixed in the second quarter, largely driving the unchanged growth reading. Private consumption growth lost steam, while fixed investment picked up. Private consumption expanded 0.2% quarter-on-quarter in Q2 (Q1: +0.5% quarter-on-quarter), as rising inflation and lower sentiment weighed on consumption. However, fixed investment expanded a solid 1.2%, up notably from Q1’s 0.3% increase and helped by easy credit conditions.
Meanwhile, the external sector continued to drag on activity in the second quarter. Exports increased 0.6% over the previous quarter, contrasting Q1’s 0.7% contraction likely aided by a weaker euro. Import growth, however, also gained steam, rising 1.1% (Q1: -0.3% qoq).
On an annual basis, GDP growth in the Euro area edged down to 2.1% in Q2, below Q1’s 2.4%.
A solid labor market and healthy investment should support robust, albeit slower, growth in 2018. Met the why particular analysts project that GDP will expand 2.3% in 2018, which is unchanged from last month’s forecast. In 2019, momentum is seen waning slightly, and GDP is forecast to grow 1.8%.
Eurozone - Consumption Data
|Consumption (annual variation in %)||-0.6||0.9||1.8||1.9||1.7|
5 years of economic forecasts for more than 30 economic indicators.
|Exchange Rate||1.18||0.65 %||Sep 20|
|Stock Market||1,188||-0.52 %||Sep 20|
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September 17, 2018
According to complete data released by Eurostat on 17 September, harmonized inflation came in at 2.0% in August.
September 13, 2018
The European Central Bank (ECB) delivered no surprises at its 13 September monetary policy meeting, leaving its main interest rates unchanged and reaffirming its commitment to winding down asset purchases related to its quantitative easing (QE) program by the end of the year.
September 12, 2018
Industrial output dropped in July, falling a seasonally-adjusted 0.8% over the previous month.
September 7, 2018
The third estimate of GDP for the second quarter released by Eurostat confirmed that soft momentum at the start of the year carried over into the second quarter.
August 31, 2018
According to data released by Eurostat, labor market conditions in the common currency bloc were largely unchanged in July.