Eurozone Q2 economic growth comfirmed at 0.3%

Eurozone gross domestic product growth for the second quarter was confirmed at 0.3%, according to data released by Eurostat on Tuesday.

Seasonally-adjusted GDP was up 0.3% in the bloc compared to the previous quarter and 1.6% from the second quarter of last year. In the first three months of the year, eurozone growth came in at 0.5%.

Eurostat cut its estimate of quarter-to-quarter growth in the quarter to March to 0.5% from 0.6%.

The report from Eurostat showed weakness in domestic demand was behind the slowdown in the second quarter. Gross investment was flat following a revised 0.4% jump in the first quarter, while consumer spending was up 0.2% and government consumption rose 0.2%.

Dennis de Jong, managing director at UFX.com, said: “Following a stronger-than-expected first quarter, ECB president Mario Draghi will be pleased to see the eurozone continued to grow during Q2 – albeit at a slower pace than the start of the year.

“Much of the second quarter was clouded by uncertainty as Britain prepared for its historic EU referendum, so while there will be relief in Frankfurt at today’s results, there will also be concern that the biggest challenge is yet to come.”