Euroarea’s economic growth stays at 0.3 pct in Q3

The flash estimate of the euro area’s third quarter growth showed an expansion of 0.3 percent seasonally adjusted in sequential terms. The quarter-on-quarter economic growth came in line with the consensus expectations. The preliminary reading shows that domestic demand has driven euro area growth. In the second quarter too, the euro area economy had expanded by 0.3 percent.

On a year-on-year basis, the seasonally adjusted economic growth expanded 1.6 percent in the currency bloc, in line with consensus expectations and unchanged from previous quarter’s year-on-year growth of 1.6 percent.

The Eurostat also released the flash estimate of EU economic growth. The economy expanded 0.4 percent year-on-year in the third quarter, whereas on quarter-on-quarter basis, the EU economy grew 1.8 percent.

Recently, the European Commission had lowered its economic projection for the euro area due to subdued global trade and increased political uncertainty. The EC projects euro area to expand 1.7 percent in 2016 and 1.5 percent next year.

The German economic growth report for the third quarter released earlier today was disappointing. It slowed to 0.2 percent quarter-on-quarter from second quarter’s 0.4 percent and was below consensus projection of 0.3 percent.

The EUR/USD pair is trading at 1.0776 at press time. Meanwhile, at 11.00 GMT, the FxWirePro’s Hourly Euro Strength Index stood neutral at -27.8803.

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