Euro-area growth slows to 0.4 per cent as annual pace edges up
Euro-area output increased by 0.4 per cent in the third quarter, down from 0.6 per cent in the preceding period but above the 0.2 per cent market expectation reported by ActionForex. Annual growth rose to 1.3 per cent. European Union output grew by 0.5 per cent quarter on quarter, with marked differences among the national estimates. The regional flash calculation drew on data from 19 countries.
Economics & Markets··Evening
Quarterly expansion slows while annual growth rises
The euro-area economy grew by 0.4 per cent in the third quarter compared with the previous three months. Eurostat, the European Union’s statistical office, put the preceding quarter’s increase at 0.6 per cent in its preliminary flash estimate of 30 October. ActionForex reported that markets had expected an increase of 0.2 per cent. Annual growth nevertheless rose from 1.2 per cent to 1.3 per cent.[1], [2]
Across the European Union, quarterly output growth eased from 0.7 per cent to 0.5 per cent. The year-on-year increase rose from 1.4 per cent to 1.5 per cent. Both the regional quarterly comparisons and annual comparisons use volume measures adjusted for seasonal effects, rather than changes in nominal output.[1]
Ireland records the largest available increase
Ireland recorded the largest quarterly increase among countries with available figures, at 5.5 per cent, after 10.2 per cent in the second quarter. Estonia, Spain and the Netherlands each expanded by 0.6 per cent. Spain and the Netherlands had both grown by 0.7 per cent in the preceding period. Germany’s increase slowed from 0.3 per cent to 0.2 per cent.[1], [2]
Lithuania’s output fell by 1.0 per cent. Among the countries reporting annual figures, fourteen had growth and one had a decline. Eurostat classifies the flash calculation for Ireland as experimental. It relies predominantly on output information and incomplete sources, with expenditure data incorporated in later revisions.[1]
Nineteen countries underpin the regional estimate
The regional calculation used information from 19 member countries, covering 96 per cent of euro-area GDP and 94 per cent of European Union GDP. The release left earlier regional growth rates unchanged. These cover the euro area and European Union as a whole, drawing on national figures for their regional totals. European quarterly national accounts follow the European System of Accounts 2010 framework. Eurostat scheduled the next GDP flash estimate for 13 November, followed by releases of main aggregates including output and employment on 7 December and 19 January 2027. All the preliminary results remain subject to revision as more source information becomes available.[1]
