Eurozone GDP Expands More Than Estimated

(RTTNews) - The euro area economy logged a faster-than-estimated growth in the third quarter, underpinned by government spending and investment, revised data from Eurostat showed on Friday.

Gross domestic product grew 0.3 percent sequentially compared to a marginal growth of 0.1 percent in second quarter. The third quarter growth was revised up from 0.2 percent.

The expenditure-side of GDP showed widespread contribution to growth. Household spending posted a slower growth of 0.2 percent, while the increase in government consumption accelerated to 0.7 percent from 0.4 percent.

Gross fixed capital formation rebounded 0.9 percent after a 1.7 percent fall.

Exports gained 0.7 percent, following a 0.4 percent drop. At the same time, imports moved up 1.3 percent, reversing a 0.1 percent drop. However, net trade provided a negative contribution of 0.2 percentage point.

The contribution to GDP growth from changes in inventories was positive at 0.1 percentage point.

On a yearly basis, GDP growth was confirmed at 1.4 percent, which was slower than the prior quarter's 1.6 percent expansion.

Further, data showed the employment growth doubled to 0.2 percent in the third quarter from 0.1 percent. Year-on-year, growth eased slightly to 0.6 percent from 0.7 percent.

Hours worked increased 0.4 percent sequentially and by 0.8 percent from the same period last year.