EUROZONE DATA
Eurozone Final Q2 GDP increased less than expected on a quarterly basis by 0.2% Q/Q (vs 0.3% flash, 0.3% in Q1) whilst printing in-line on a yearly basis at 0.6% Y/Y (vs 0.6% flash, 0.5% in Q1).
- However, the details were soft with both consumption and investment negative, the majority of the growth fueled by net exports and a small positive contribution from government expenditure.
- The marginally lower than expected Q/Q reading was driven by household final expenditure falling 0.1% (vs rising 0.3% in Q1), whilst gross fixed capital formation fell 2.2% (vs -1.8% in Q1).
- Net exports provided a positive contribution of 0.5% to the quarterly GDP figure (vs 0.8% in Q1) - with exports increasing 1.4% Q/Q (+1.1% in Q1) whilst imports rose 0.5% (vs falling 0.6% in Q1).
- Meanwhile, government final consumption expenditure was the only other positive subcomponent, increasing 0.6% (vs 0.1% in Q1).
- The contribution from inventories was negligible (0% vs -0.3% in Q1) - after declining for three consecutive quarters.
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