The Eurozone economy failed to be boosted by a cheap euro in the three months to September, as new figures showed the growth of exports falling.
Total economic growth came in at 0.3 per cent, with export growth slowing to 0.2 per cent in the period, compared with 1.6 per cent over the three months to June, according to the data published by Eurostat this morning. Exports remain weak despite the value of the euro falling. The euro could buy $1.25 last year, it now only buys $1.09.
Import growth stayed at 0.9 per cent, meaning that net trade reduced overall growth. Consumption climbed 0.4 per cent while investment failed to expand. The economic growth rate is equal to earlier estimates, but is slower than the 0.4 per cent in the three months to June and 0.5 per cent in the three months to March.
“Looking ahead, we expect private consumption to continue to grow at around the current pace, supported by low oil prices, still weak inflation, and gradually improving labour market conditions. As we repeatedly argued, we believe investment remains a major source of uncertainty and we project only a modest rebound,” said economist Apolline Menut from Barclays.
“Underpinning our expectations, we see only moderate growth in productive investment, as very supportive financial conditions are offset by low growth prospects.”