Consumption and net exports to lead Euro area GDP in Q2

Seasonally adjusted GDP rose by 0.3% qoq in the euro area during the second quarter of 2015, after an increase by 0.4% qoq in Q1. For the second reading, no change has been expected and a confirmation of the 0.3% qoq growth. On the regional breakdown, Spain had the highest growth rate at 1.0% qoq, closely followed by Greece and Estonia at 0.8% qoq. Finland and France were the worst of the class with zero growth and -0.4% qoq, respectively. 

"Looking below the surface, we expect the biggest contribution to GDP to stem from household consumption, up by 0.3% qoq, confirming our story of a domestic demand -led recovery. Government expenditure should also contribute positively, but the investment story should receive a whack after increasing three quarters in a row. The gross fixed capital investment is expected to experience zero growth qoq in Q2. The drag would mainly come from investment in construction. Net external trade is to have added 0.15pp of GDP, on the back of low imports", states Societe Generale.