Eurozone GDP outpaced forecasts slightly in the third quarter

The Eurozone´s gross domestic product expanded slightly quicker than expected in the third quarter, but analysts cautioned clients not to read too much into the figures.

Gross domestic product (GDP) grew by 0.2% quarter-on-quarter in the three months to September, twice analysts´ forecast, and by 0.8% when compared with a year ago, according to Eurostat.

In comparison with the three months to June GDP expanded by 0.1% in Germany, as expected, and 0.3% in France (consensus: 0.1%).

Spain´s economy slowed down a tad to a 0.5% rate of change, after the 0.6% pace recorded in the second quarter, while Italy officialy entered recession after registering a second consecutive quarter of contraction. Economic activity in Italy slipped by 0.1% following a 0.2% fall in the previous quarter.

In year-over-year terms Spanish growth, at 1.6%, was the quickest amongst the single currency area´s largest economies.

The Greek economy accelerated to a 0.7% pace of growth, building on a rise of 0.3% in the second quarter.

A full breakdown of the data will be released on 3 December.

Growth expected to be flat in Q4

According to Evenlynn Hermann, European economist at BNP Paribas, the main factor behind the positive surprise were the better-than–expected readings, on the basis of her own estimates, on activity in France and Germany.

However, France´s expansion seems to have been flattered by inventory accumulation, which has the potential to somewhat unwind in the coming months, Hermann adds. Germany on the other hand appears to have benefitted from a “somewhat stronger” contribution from net exports.

Indeed the underlying momentum in Euro land is pointing to flattish growth in the final three months of the year.

As of 10:43 the euro/dollar was lower by 0.16% to 1.2457.