REPEAT: MNI: EZ Q3 GDP Slows On Qrtr, Up 2.6% On Year

Repeats Story Initially Transmitted at 10:06 GMT Dec 7/05:06 EST Dec 7

--On Quarter Growth at +0.6%, Unchanged on 1st Estimate

--On Annual Growth at +2.6%, Revised Higher On 1st Estimate from +2.5%

By Shaily Mittal

     FRANKFURT (MNI) - Euro area economic growth in the third quarter of 2017

gained pace on annual basis, though it eased slightly on quarterly basis, data

released by Eurostat Thursday showed.

     The updated second flash estimate confirmed GDP growth at 0.6% q/q in the

third quarter, down from the 0.7% q/q in the second quarter. On the year, GDP

rose to 2.6% y/y (revised upwards from 2.5% y/y in first flash reading) from

2.4% in the previous quarter, underlining the recovery in the economies of the

Eurozone.

     The fastest growing nations in the Eurozone in Q2 were Malta (1.9% q/q) and

Latvia (1.5% q/q).

     Household final consumption added 0.2 percentage points (pp) to growth

while gross fixed capital formation also added 0.2 pp to growth, with the share

of both components having fallen from Q2. Government expenditure and net exports

(exports less imports) did not contribute at all while inventories added 0.1

percentage points.

     In Q3, household final consumption expenditure rose by 0.3% q/q in the euro

area from 0.5% in the previous quarter. Gross fixed capital formation increased

by 0.2% after rising 0.3% in the previous quarter. Exports gathered momentum,

growing 1.2%, while growth in imports fell significantly, down from 1.7% in Q2

to 1.1% in Q3.

     In the European Union as a whole GDP was unchanged at 0.6% and 2.6% y/y

(revised up from 2.5% in the first flash reading), Eurostat data showed.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com