Euro zone Q2 growth revised up, supported by household spending

BRUSSELS  – Euro zone economic growth was stronger than previously estimated in the second quarter, data showed on Wednesday, as household spending recovered after half of year of stagnation despite the squeeze on disposable income from spiraling inflation.

The European Union’s statistics office Eurostat said gross domestic product in the 19 countries using the euro rose by 0.8 percent quarter-on-quarter and by 4.1 percent from a year earlier.

In mid-August, Eurostat had estimated figures respectively of 0.6 percent and 3.9 percent.

While Germany registered nearly no growth, France expanded by 0.5 percent from the previous quarter and both Italy and Spain by 1.1 percent. Growth was strongest in the Netherlands at 2.6 percent.

Some countries, such as Finland and Portugal revised up their growth estimates, while Ireland and Greece reported solid expansion after having no estimates in mid-August.

Eurostat said that household spending contributed 0.6 percentage points to the euro zone growth figure after zero for the previous two quarters. Government spending contributed 0.1 percentage points and capital formation 0.2.

External trade’s contribution was a negative 0.1 percentage points.