Eurozone third quarter GDP revised higher by Eurostat

The final reading of eurozone economic growth in the third quarter was unexpectedly revised higher on Tuesday, boosted by household and public sector spending.

Eurostat raised its estimate on gross domestic product to year-on-year growth of 1.7% from a previous 1.6%. Second quarter growth was also revised higher by one tenth of a percentage point to 1.7%.

Quarter-on-quarter GDP was confirmed at a 0.3% rise.

Economists had expected no change to the quarter-on-quarter and year-on-year figures.

Household spending, which added 0.2 percentage points to the final estimate, was the main driver of growth. Changes to inventories and public sector spending also added another 0.1 points to the reading.

“The minor upward revision of year-on-year growth in the eurozone is unlikely to be enough to halt the case for further monetary easing," said Paul Sirani, chief market analyst at Xtrade.

“With the uncertainty caused by Brexit and Italy wavering over its membership of the single currency, ECB President Mario Draghi faces an increasingly tricky task. Extending rather than tapering the QE programme looks likely at this stage."