BRUSSELS (dpa-AFX) - The euro area economy grew at a slightly slower pace in the fourth quarter, flash estimate published by Eurostat, showed Wednesday. 



Gross domestic product climbed 0.6 percent sequentially, following third quarter's 0.7 percent expansion. The rate came in line with the preliminary flash estimate published on January 30. 



On a yearly basis, GDP growth eased slightly to 2.7 percent from 2.8 percent in the preceding period. The annual rate also matched previous estimate. 



Over the whole year 2017, GDP grew 2.5 percent. 



In a separate communique, Eurostat said industrial production rose 0.4 percent in December from November, when it climbed 1.3 percent. 



Production of durable consumer goods increased 2.7 percent, and output of intermediate goods and energy rose 1.4 percent and 1.3 percent, respectively. 



Non-durable consumer goods output gained moderately by 0.7 percent, while capital goods output slid 1.1 percent. 



On a yearly basis, growth in industrial output accelerated to 5.2 percent from 3.7 percent in the previous month.



Copyright RTT News/dpa-AFX </s> BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - Euro area continued its expansion at the end of 2017, as previously estimated, taking the full-year growth to a decade-high.



Gross domestic product climbed 0.6 percent sequentially, following third quarter's 0.7 percent expansion. The rate came in line with the preliminary flash estimate published on January 30. 



On a yearly basis, GDP growth eased slightly to 2.7 percent from 2.8 percent in the preceding period. The annual rate also matched the previous estimate. No breakdown of data is currently available from the statistical office. 



For the whole year 2017, GDP grew 2.5 percent, the fastest in a decade. 



Largely driven by foreign demand, Germany's GDP grew 0.6 percent sequentially in the fourth quarter, but slightly slower than the 0.7 percent expansion seen in the third quarter. 



Despite a slowdown in Germany, it was the major factor for euro area growth. Spain also expanded strongly, by 0.7 percent, but slower than the preceding three month's 0.8 percent expansion. 



On the other hand, France, Dutch and Portugal posted faster growth. France's growth improved to 0.6 percent on foreign demand. 



Dutch GDP growth doubled to 0.8 percent from 0.4 percent. Portugal's growth came in at 0.7 percent, up from 0.5 percent a quarter ago. 



Italy's logged a weaker growth of 0.3 percent following third quarter's 0.4 percent expansion. 



Citing stronger cyclical momentum in Europe and better-than-expected pick-up in global economic activity and trade, the EU had raised its growth projection for the euro area to 2.3 percent in 2018 from 2.1 percent. 



Likewise, the forecast for next year was upgraded to 2 percent from 1.9 percent. 



In a separate release, Eurostat said industrial production grew for the third consecutive month in December. Industrial production rose 0.4 percent from November, when it climbed 1.3 percent. 



An acceleration in industrial production growth was not enough to prevent a slight slowdown in eurozone GDP growth in the fourth quarter, Stephen Brown, an economist at Capital Economics, said. Nevertheless, the economic outlook is bright.



Copyright RTT News/dpa-AFX </s> Eurozone industrial production rose more than in expected in December, while gross domestic product growth for the fourth quarter was in line with expectations, according to data released by Eurostat on Wednesday. Industrial production was up 0.4% on the month in December, beating expectations for a 0.2% jump but down from a 1.3% increase in November. The production of durable goods rose 2.7%, while the production of intermediate goods and energy was up 1.4% and 1.3%, respectively, and ... </s> European Union statistics office Eurostat said gross domestic product (GDP) growth in the 19-country euro zone was 0.2% in the second quarter versus the previous quarter, a slowdown from 0.4% percent in the first three months of 2019.

The GDP flash estimates numbers, including year-on-year growth of 1.1% from the second quarter of 2019, were in line with economists' forecasts.

German GDP fell 0.1% quarter-on-quarter, Germany's Federal Statistics Office said earlier on Wednesday. The annual growth rate in Europe's largest economy slowed to 0.4% in the second quarter from 0.9% in the first.

A global slowdown has affected growth across western Europe, but Germany's traditionally export-reliant economy has been particularly vulnerable.

Industrial production in the euro zone area fell by 1.6% in June compared with the previous month, and by 2.6% from the same month in 2018. Economists had predicted less sharp drops in output of 1.4% month-on-month and 1.2% year-on-year.

Employment growth in the euro zone area slowed to 0.2% quarter-on-quarter from 0.4% in first quarter, and 1.1% year-on-year from 1.3% in first three months of 2019.

Although employment growth is on a downtrend across the euro zone area, unemployment in Germany is just above its record low of 4.9% and data on Wednesday showed France's jobless rate fell to 8.5% in the second quarter, its lowest since the end of 2008.

However, economists say the employment outlook for the euro zone's two largest economies is uncertain given their broader economic slowdowns and exposure to the impact of global trade disputes. </s> The issue is: how well and how sustainable?

In the United States, the economy has been strong enough for the Federal Reserve to start raising interest rates, slowly. In the euro zone, growth is robust enough for the European Central Bank to think about dropping public warnings of risks.

China, meanwhile, has so far staved off last year's dire warnings of a sharp, potentially damaging, slowdown.

But much of this comes courtesy of billions of dollars, euros, and other currencies being pumped into the global economy. In some cases, it is still being pumped in.

And the results are not exactly bracing. The International Monetary Fund expects the world economy to grow 3.5 percent this year --- not bad until you remember it averaged 4.2 percent over the 10 years before the financial crisis.

The IMF sees the U.S. economy growing at 2.3 percent this year, below the 2.6 percent average for 1999-2008. Ditto the euro zone -- 2017 growth at 1.7 percent versus 2.1 percent. For China, the numbers are 6.6 percent and 10.1 percent, respectively.

After their spring meeting last month, the IMF and World Bank sounded a bit passionless about it all.

"The global economy is gaining momentum, but risks remain tilted to the downside," they said.

So a near 10-year deluge of global central bank stimulus has not brought things back to where they were and a left a large question about the sustainability of what has been achieved.

As European Central Bank President Mario Draghi said in a slightly different context in the past week: "It is too early to declare success."

Most economists appear to believe the global economy is strong enough to keep going, if not exactly at a tear. The coming week will probably confirm this, but could also provide something of a reality check.

In what may be an example for the global economy as a whole, the United States is expected to report slower industrial output growth for April -- that is, it continues to grow (at 0.3 percent), but at a lesser rate than March's 0.5 percent.

But more attention is likely to be paid to the respective reports of the Federal Reserve banks of Philadelphia and New York -- the Philly Fed and Empire State.

Last time around, they both signalled growth, but with the New York report far less robust than the Philly. Same again?

China's economy, meanwhile, has shrugged off fears of a major slowdown. It is expected to slow from surprisingly strong first quarter growth, however, as previous stimulus measures wear off and policymakers set their eyes on controlling risks in the financial market.

In the coming week, data may further confirm a slight slowing of momentum, but nothing dramatic. Year-on-year retail sales, for example, are expected to dip to 10.6 percent from 10.9 percent.

The euro zone will offer up its second reading of first quarter GDP growth, the first coming in at 0.5 percent quarter on quarter.

Analysts polled by Reuters expect no change, but industrial production data for March did come in far softer than expected.

Another focus will be on the final April figures for inflation. Again, no change expected -- 1.9 percent year-on-year -- but the ECB will be watching to make sure all that money it has pumped in does not take the number too much higher. </s> The Italian economy shrank by 0.2% during the quarter for the three months to December of 2018, following a 0.1% contraction in the previous period. This was slightly more than market expectations of a 0.1% decrease. It marked the second consecutive quarter of contraction so throwing the country into recession.

Just to be clear; a recession is defined by economists as gross domestic product (GDP) falling for two consecutive quarters. The new figures mark the third recession experienced by Italy since the global financial crisis more than a decade ago.

The statistics body ISTAT said in a statement:

Since the middle of last year, the coalition government in Rome has been at odds with European Union (EU) finance officials over its controversial budget that would breach the EU budgetary rules.

The Italian government were able to pass their monetary agreement at the end of December, and so averted a major showdown with the EU. The government in Rome had proposed a debt target of 2.4% of GDP but the EU would only allow 2.04% for 2019, falling to 1.8 percent next year and 1.5% in 2021. The government had said higher economic growth would alleviate any budget breaking fears held by the EU.

However, what the latest round of economic data reveals is that business confidence in Italy fell to its lowest level for more than two years, marking a fourth consecutive decline.

Business confidence (an index) fell to 99.2 in January, its lowest level since August 2016, down from 99.7 in December, according to data from ISTAT. On top of this manufacturing confidence slipped to 102.1 in January, its worst reading since September 2016, down from 103.4 in December.

The only bright spot in the Italian economy was found in consumer confidence which rose in January to 114.0 from 113.2 the month before. This can be neutralised as the level of households debt in Italy stands at 61.12% of gross income versus an average of 53.38% since 2000.

Brexit is an issue for the wider EU, not just the Eurozone, however, one cannot overlook the fact that Italian economy has become a mounting reason of concern over the past few months. Just look at the movement of the 10-year spread of Italian government bonds over the German equivalent.

This morning the spread is +242.3 basis points or 2.423%. The rolling 12-month average is just +217 basis points. The market is expressing its concern in the spread of Italian debt over the Eurozone benchmark.

The EU Commission knows that with a debt to GDP ratio of 131.8%, Italy has the second largest debt burden in relative terms...second only to Greece. However, the Italian economy is eight times as large as that of Greece and given the Eurozone is still haunted by the memory of the debt crisis that required bailouts for several countries it has insisted that the Italian government rein back on its spending plans. To be blunt, Italy could not be bailed out. It is so large; a crisis would cripple the Eurozone.

The Eurozone economy itself grew by a rather pale 0.2% in the final quarter of 2018, the same as in the previous quarter, according to provisional figures released Thursday by the Eurostat statistics agency.

It grew by 1.8% in 2018 overall. This must be noted as the weakest rate in four years and is certainly far lower than had been anticipated a year ago, when the bloc was expected to slow only slightly from 2017's strong 2.4%. No wonder the President of the European Central Bank (ECB), Mario Draghi has been even hinting at new measures to cushion the region’s economy.

Of course, the attitude in Rome is to shrug off the weak data as the Italian Prime Minister, Giuseppe Conte sought to downplay the recession. He looked to a wider horizon as to where blame should be placed citing the trade breakdown between the United States and China. Mr Conte claims this has weighed on Italian exports. He is wrong to do this as the U.S. accounts for just 6.6% of all Italian exports and China is not among its top five export clients. This is far more than a “...transitory factor..." which is what he told reporters in Rome.

So, one must now raise serious questions over Italy’s growth plans. Boosting GDP by 1% this year is looking an unachievable target. That implies, that the coalition is going to be forced into changing its spending schedule...but probably not until after May’s European parliamentary elections. </s> Germany's gross domestic product grew 0.4% on year in 2Q. "German Economy Shrank by 0.1% in 2Q," at 0635 GMT, misstated that GDP grew 0.4% in annualized terms. It grew 0.4% on year, not in annualized terms. </s> The shrank in the second quarter, dragged down by a slump in exports, data showed on Wednesday, as manufacturers in Europe's largest struggle against weaker foreign demand and trade disputes.

Gross domestic product (GDP) fell 0.1% quarter-on-quarter after a confirmed growth rate of 0.4% in the first three months of the year, the Federal Statistics Office said.

The preliminary reading for April-June was in line with a Reuters poll of analysts.

The annual growth rate slowed to 0.4% in the second quarter from 0.7% in the first, calendar-adjusted data showed. That beat the poll forecast of +0.1%.

"The development of foreign trade slowed down economic growth because exports recorded a stronger quarter-on-quarter decrease than imports," the statistics office said.

Positive contributions came from domestic demand as household consumption, government expenditure and gross fixed capital formation increased on the quarter, the office said.

Construction declined in the second quarter after the sector pushed up overall growth in the first three months due to an unusually mild winter, the data showed.

"For a year now, the has been only crawling forward," Unicredit analyst Andreas Rees said, adding there was hardly any improvement in sight for the second half of 2019 as there were many uncertainties for German exporters.

"Besides Brexit, this is above all the U.S.-Sino trade dispute and possible U.S. tariffs on European cars," Rees said.

Following release of the data, the yield on Germany's benchmark 10-year government bond dropped to a record low of -0.623%. </s> BRUSSELS (dpa-AFX) - At 5.00 am ET Wednesday, Eurostat is slated to release euro area GDP and industrial production data. GDP is seen expanding 0.6 percent, in line with flash estimate.



Ahead of the data, the euro traded mixed against its major rivals. While the euro rose against the pound and the franc, it held steady against the yen. Against the greenback, it dropped.



The euro was worth 1.2355 against the greenback, 132.80 against the yen, 1.1550 against the franc and 0.8907 against the pound as of 4:55 am ET.



Copyright RTT News/dpa-AFX
Eurozone GDP rises by 2.5% in 2017, a pace not seen since 2007, and industrial production is up 5.2% year-on-year. The production of durable consumer goods is up 7.4% and capital goods, indicating investments, are up 7.6%.