Exports and Consumers Boost Euro Area Growth in Q2

The Euro Area economy advanced 0.3 percent on quarter in the three months to June of 2016, slowing from a 0.5 percent growth in the previous period and in line with earlier estimates. Exports and household consumption drove the expansion while investment stalled and the drag from inventories worsened.

On the expenditure side, household consumption contributed positively to growth and increased 0.2 percent (0.6 percent in Q1). Government spending edged up 0.1 percent (0.6 percent in Q1) and gross fixed capital formation was flat (0.4 percent in Q1), with both making a neutral contribution to growth while changes in inventories subtracted 0.2 percent (-0.1 percent in Q1). The contribution of external trade was positive, with exports rising 1.1 percent (flat in Q1) and imports increasing 0.4 percent (-0.1 percent in Q1).

On the production side, agriculture rebounded (0.3 percent from -0.4 percent in Q1) and manufacturing (0.5 percent from 0.2 percent) and real estate activities (0.3 percent from 0.1 percent) grew at a faster pace. In contrast, growth slowed for trade, transport, accommodation and food service activities (0.4 percent from 0.8 percent); information and communication (0.1 percent from 0.9 percent); professional and support service activities (0.8 percent from 1 percent); administration and other public services (0.2 percent from 0.5 percent) and arts, entertainment and other services (0.2 percent from 0.8 percent). The construction sector declined 0.3 percent (1 percent in Q1) and financial and insurance activities went down 0.5 percent (0.8 percent in Q1).

Year-on-year, the economy advanced 1.6 percent, slowing from a 2.7 percent expansion in the previous three months and also in line with preliminary figures. 

Exports and Consumers Boost Euro Area Growth in Q2

Eurostat | Joana Taborda | joana.taborda@tradingeconomics.com
9/6/2016 10:28:13 AM