Eurozone Exits Recession In Q1

RTTNews | 433 days ago
Eurozone Exits Recession In Q1

(RTTNews) - The euro area economy expanded in the first quarter after two consecutive declines as all big four economies exhibited better performance, boosting hopes of a sustained recovery this year.

Gross domestic product grew by a faster-than-expected 0.3 percent sequentially following a 0.1 percent fall each in the fourth and third quarters of 2023, preliminary flash estimates from Eurostat showed.

GDP was expected to rise only by 0.1 percent in the first quarter. Thus the single currency economy recovered from a technical recession that is defined as two consecutive quarters of negative growth. On a yearly basis, GDP growth accelerated to 0.4 percent from 0.1 percent in the previous quarter. This was also better than the forecast of 0.2 percent.

The German economy grew a more-than-expected 0.2 percent sequentially, in contrast to the revised 0.5 percent decrease in the preceding period.

Underpinned by robust final domestic demand, France's economic growth doubled to 0.2 percent from 0.1 percent in the fourth quarter. Italy's GDP growth accelerated to 0.3 percent from 0.1 percent. This was the third consecutive quarter of expansion.

Spain logged a much faster growth compared to its peers, up 0.7 percent, which was similar to the fourth quarter growth.

Preliminary data showed that economies of other euro countries such as Ireland, Portugal, Belgium and Austria also grew in the first quarter. ING economist Bert Colijn said the continued modest recovery is putting the currency bloc on track for a better-than-expected growth rate for 2024.

With inflation remaining relatively benign at the moment and unemployment at record lows, the economic environment in the eurozone is looking up, the economist added.

Separate data from Eurostat showed that eurozone harmonized inflation held steady at 2.4 percent in April and matched economists' expectations.

Core inflation that excludes prices of energy, food, alcohol and tobacco softened to 2.7 percent from 2.9 percent. However, the core rate was slightly above the expected 2.6 percent.

Month-on-month, the harmonized index of consumer prices grew 0.6 percent and core consumer prices rose 0.7 percent in April.

The European Central Bank is widely expected to lower interest rates in the next policy session in June as inflation is projected to start its return to the 2 percent target in the coming months.

read more
Eurozone Retail Sales Drop For First Time In 5 Months; Services Output Fall

Eurozone Retail Sales Drop For First Time In 5 Months; Services Output Fall

Euro area retail sales decreased for the first time in five months and services production declined in May, suggesting a slowdown in the second quarter. Retail sales logged a monthly fall of 0.7 percent in May, reversing April's 0.3 percent increase, Eurostat reported Monday. Sales were expected to drop 0.8 percent. Another data from Eurostat showed that services production decreased 0.3 percen
RTTNews | 19h 55min ago
Eurozone Investor Confidence Strongest In More Than 3 Years

Eurozone Investor Confidence Strongest In More Than 3 Years

Eurozone investor confidence rose to the highest level in more than three years in July suggesting that fears of recession triggered by the US tariff shocks are completely off the table, survey data from the behavioral research institute Sentix showed on Monday. The investor confidence index advanced to 4.5 in July from 0.2 in June. The reading was the highest since February 2022 and also stayed
RTTNews | 21h 43min ago
German Industrial Production Rebounds In May

German Industrial Production Rebounds In May

Germany's industrial production rebounded in May driven by robust demand for automobile and pharmaceutical products, official data revealed on Monday. Data released by Destatis showed that industrial production grew 1.2 percent in May from a month ago, confounding expectations for a decline of 0.6 percent. Output in April was revised down to show a 1.6 percent fall compared to the 1.4 percent d
RTTNews | 22h 11min ago
German Factory Orders Log Bigger-Than-Expected Fall

German Factory Orders Log Bigger-Than-Expected Fall

Germany's factory orders declined more than expected in May on falling demand from both the domestic market and other euro area economies, official data revealed on Friday. Factory orders decreased 1.4 percent from a month ago, Destatis reported. Orders were expected to drop 0.2 percent after an upwardly revised 1.6 percent rise in April. Orders declined for the first time in four months.
RTTNews | 3 days ago
Eurozone Private Sector Expands More Than Estimated

Eurozone Private Sector Expands More Than Estimated

The euro area private sector expanded more than previously estimated in June as both manufacturing and services sectors registered higher output, final survey results from S&P Global showed on Thursday. The HCOB final composite output index advanced to 50.6 in June from 50.2 in May. The reading was well above the flash estimate of 50.2.
RTTNews | 4 days ago
Eurozone Inflation Hits ECB Target

Eurozone Inflation Hits ECB Target

Euro area inflation rose slightly to hit the European Central Bank's 2 percent target in June on slower fall in energy prices and the rise in services inflation, flash estimate from Eurostat showed on Tuesday. Annual inflation climbed to 2.0 percent in June from 1.9 percent in May. The rate reached the inflation target and also matched economists' expectations.
RTTNews | 6 days ago
Eurozone Manufacturing Sector Contraction Slows In June

Eurozone Manufacturing Sector Contraction Slows In June

Eurozone manufacturing activity contracted at a slower pace in June as output showed a sustained expansion and total new work stabilized ending a 37-month period of decline, final survey data from S&P Global showed on Tuesday. The HCOB manufacturing Purchasing Managers' Index posted 49.5 in June, up from 49.4 in May. This was the highest score since August 2022.
RTTNews | 6 days ago