Euro area Q3 growth surprised on the downside
Today’s Q3 GDP flash preliminary estimate for the euro area (EA) surprised on the downside. It averaged only 0.2% qoq (1.7% yoy), clearly lower than market expectation of 0.4% qoq (1.8% yoy) and what our various indicators suggested.
- Euro area (EA) Q3 growth was only 0.2% qoq, below expectation of 0.4% qoq.
- However, noise surrounding the German car industry likely played a major role giving leeway for a Q4 rebound.
- We revised EA growth forecasts slightly down but see no impact on the ECB policy outlook.