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Thursday, September 2, 2010

Euro Area GDP Revised Higher

Reuters details:

Higher household spending and investment drove euro zone growth in the second quarter of 2010, while first quarter growth was also stronger than thought, but the expansion should slow in the second half of the year.

Year-on-year, the euro zone economy expanded 1.9 percent in the second quarter, rather than the previously estimated 1.7 percent, and grew 0.8 percent in the first quarter rather than the earlier reported 0.6 percent.

Gross domestic product in the 16-nation currency area grew 1.0 percent quarter-on-quarter in the April-June period, the fastest pace in four years, after an upwardly revised 0.3 percent in the first quarter.

Growth was driven by very strong figures in Germany, the currency area's biggest economy. Crisis-hit Greece was the only euro zone country to suffer contraction, although figures for Ireland were not available.

"Activity will probably lose momentum in the second half of the year," de Lucia said, pointing to a likely deceleration of growth in Germany, where activity largely relies on exports. Major export markets like China and the U.S. are slowing down.



Source: Eurostat