- Howard Archer, IHS Economics
The Euro zone economy grew 0.3% in the third quarter following a 0.4% expansion in the June quarter. On an annual basis, the combined gross domestic product of the 19 countries that use the Euro increased 1.6%. The data came in line with Eurostat's preliminary estimate. Household and government spending increased during the reported period, while a rise in stocks also contributed to growth. In contrast, investment spending remained flat, while imports outperformed outbound shipments, stunting the economic recovery. The precipitous slowdown in exports is likely to fuel concerns among policy makers at the ECB that weaker growth in China and other developing economies would weaken the Euro zone economy's fragile revival.
Last week the ECB announced additional stimulus measures indented to underpin growth and the inflation rate, while ECB President Mario Draghi cited developments in the global economy as major headwinds that may prompt a further expansion of a bond-buying programme that was introduced in March. Officials will also be concerned by the slowing of investment spending, which has long been a drag on the Euro zone's recovery from the 2008 financial crisis.
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