However, the German surprise was offset by a big downward revision of its second-quarter data to show a contraction by 0.3 percent, which was more consistent with the sustained weakness of data on industrial production and orders during that time.Kirill Kudryavtsev/AFP via Getty Images

The eurozone economy is not dead (yet) – POLITICO

· POLITICO

The eurozone economy showed surprising strength in the third quarter, defying the narrative that the bloc is heading for a protracted slowdown.

The eurozone’s gross domestic product (GDP) grew by 0.4 percent between July and September, beating an analyst consensus of 0.2 percent, according to preliminary estimates published by the European Union's statistics agency. That represents an acceleration from 0.2 percent in the previous quarter.

Concerns over the health of the economy intensified over the summer, amid signs of a sharp slowdown in manufacturing. Such fears, along with a marked drop in inflation, have since led the European Central Bank (ECB) to step up the pace of interest rate cuts to provide relief to the economy.