Eurozone GDP Beats Forecasts at 0.4%, but Germany Slows and France Contracts - Action Forex

Eurozone GDP expanded 0.4% q/q in Q3 , slowing from 0.6% in Q2 but beating market expectations of 0.2%, according to Eurostat’s preliminary flash estimate. Annual growth edged up from 1.2% to 1.3%. The stronger-than-expected headline suggests that economic activity held up better than anticipated, although the slower quarterly pace and divergent performances among major economies point to an uneven expansion. Germany’s growth moderated from 0.3% to 0.2% , while France slipped from stagnation into a 0.1% contraction. Italy also lost momentum, with growth slowing from 0.2% to zero. In contrast, Spain continued to outperform, expanding 0.6% following 0.7% in Q2, while the Netherlands recorded the same quarterly growth rates.