Eurozone economy grows touch more than expected in Q3
The eurozone economy grew a little more than expected in the third quarter, while the unemployment rate was steady in September, according to figures released by Eurostat on Thursday.
The economy grew 0.2% in the third quarter, in line with the previous quarter and ahead of expectations of 0.1% growth.
On the year, gross domestic product rose 1.1% in the eurozone, in line with expectations and down from 1.2%.
Other data from Eurostat showed that the seasonally-adjusted unemployment rate for the bloc was stable in September at 7.5% and down from 8.0% in September last year. This marks the lowest rate recorded in the euro area since July 2008.
The headline inflation rate for the eurozone fell to 0.7% in October from 0.8% in September, in line with analysts' expectations. The core rate of inflation edged up to 1% from 1.1%.
Andrew Kenningham, chief Europe economist at Capital Economics, said the slightly better-than-expected third-quarter GDP figure for the eurozone does not alter the fact that the region is expanding at only a very modest pace.
"And forward-looking indicators suggest that it is likely to slow further in the fourth quarter," he added.
"Surveys of firms’ hiring intentions suggest that employment growth will continue to lose pace, while other surveys show that labour shortages are easing, so we think the unemployment will remain around this level in the coming months. And note that more timely national data for Germany, published yesterday, showed no change there in October.
"Looking ahead, none of this changes our view that the euro-zone economy as a whole is slowing and will probably expand at a feeble quarterly pace of around 0.1% for the next year or so. That in turn will keep the pressure on policymakers, both in Frankfurt and in national capitals, to do more to boost demand."