Eurozone economy grows faster than expected
The single currency area stagnated at the start of the year, registering no growth, and it only narrowly avoided falling into a technical recession.
GDP rose by 0.3% in the eurozone, compared with the previous quarter, showing a return to growth stronger than the 0.2% analysts had predicted.
Compared with the second quarter of 2022, seasonally adjusted GDP increased by 0.6% in the Euro area.
ECB hikes rates to match record high as inflation set to remain 'too high for too long'
Growth across the EU as a whole was stable for the quarter at 0.2%, and 0.5% higher than the same period a year ago.
The single currency area stagnated at the start of the year, registering no growth, and it only narrowly avoided falling into a technical recession, marked by two consecutive quarters of economic contraction.
Inflation in the eurozone is also easing, with official figures showing it is expected to be 5.3% in July 2023, down from 5.5 % in June.
Looking at the main components of euro area inflation, food, alcohol and tobacco are expected to have the highest annual rate in July — 10.8% down from 11.6% in June.
This is followed by services (5.6% up from 5.4% in June), non-energy industrial goods (5%, down from 5.5%) and energy (-6.1%, compared with -5.6%).
UK GDP dips 0.1% in May
Daniele Antonucci, CIO at Quintet Private Bank, said the fact inflation slowed further this month is «of course a good thing», however this month's report is in line with expectations.
He added it was «more disappointing» that core inflation, which excludes volatile components such as energy and food, was unchanged at the elevated level of 5.5%, higher than expected.
Antonucci continued: «Even though GDP growth appears to have re-accelerated, the Q2 report
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