Eurozone Economic Growth Holds Steady in Third Quarter Despite German Weakness

Eurozone economic growth held steady at 0.3% in the third quarter despite a weaker-than-expected showing from Germany.

The second estimate from the EU's statistics arm confirmed the 0.3% reading it had predicted on Oct. 31. On the year, the eurozone economy expanded by 1.6%.

The figures followed data earlier Tuesday from Germany that showed export weakness caused the German GDP growth rate to halve in the third quarter to 0.2%, below the 0.3% growth expected. However, a modest recovery in France after economic contraction in the second quarter, and 0.3% growth in Italy after stagnation in the previous quarter buoyed the overall eurozone tally.  As previously announced, Spain expanded by 0.7%, the highest of the single-currency bloc's leading economies, while Portuguese output swelled by 0.8%.

The Eurostat GDP report came as the ZEW economic research institute put out its index of analysts' and investors' sentiment regarding the German economy.

Respondents' assessment of the current situation fell by 0.7 point to 58.8 points instead of edging higher, as expected, with the pollsters attributing the decline to the election of Donald Trump as U.S. President. The ZEW gauge of economic sentiment rose by a bigger-than-expected 3.5 points to a reading of 15.8 points, however. The same gauge for the eurozone as a whole remained in negative territory.

The euro was recently up 0.51% against the dollar, with one euro buying $1.0792.

The yield on the 10-year German bond was down 1 basis point at 0.30%.

The Stoxx 600 index was up 0.07% at 338.45.

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