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Euro area growth surpasses forecasts, inflation slows

Euro area growth surpasses forecasts

The eurozone economy grew at a faster than expected pace in the third quarter, while inflation signaled a slowdown, data released on Thursday showed.

The Bureau of Statistics of the eurozone revealed that euro area economic growth reached 0.2 percent in the three months to September, the same pace as the second quarter. Analysts had predicted an expansion of 0.1 percent.

The year-on-year reading, the Eurozone economy grew by 1.1 percent in the third quarter, decelerating from 1.2 percent in the second quarter and 1.3 percent in the first three months.

On the other hand, the flash consumer price index, the ECB’s favorite inflation gauge, fell to 0.7 percent in the year ended October from a downwardly revised of 0.8 percent rise.

As claims of a trade war between China and the United States, in addition to Brexit, have contributed to the weakening of European economies.

As of 11:12 GMT, the euro traded 0.12 percent higher at $1.1160, ahead of U.S. personal spending, Core PCE index and Chicago PMI data.

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