Third Quarter GDP Numbers Deliver Mixed Results as Eurozone Inflation Accelerates Once More

‘It’s been a busy start to the day on the Eurozone economic calendar this morning.

Key stats included 3^rd quarter GDP numbers for France, Germany, Spain, and the Eurozone.

Member States

In the 3^rd quarter, the Spanish economy grew by 2.00% quarter-on-quarter versus a forecasted 2.7%. The economy had expanded by 1.1% in the previous quarter.

The French economy grew by 3.0% in the quarter versus a forecasted 2.1%. In the 2^nd quarter, the economy had expanded by 1.2%.

For Germany, the economy grew by 1.8% quarter-on-quarter, falling short of a forecasted 2.2%. In the previous quarter, the economy had grown by 1.9%.

The Eurozone

In the 3^rd quarter, the Eurozone economy grew by 2.2% quarter-on-quarter. The economy had expanded by 2.1% in the 2^nd quarter. Year-on-year, the economy expanded by 3.7%.

According to Eurostat,

Among member states, with data available for the 3^rd quarter:

• Austria (+3.3%) recorded the highest increase, quarter-on-quarter, followed by France (+3.0%) and Portugal (+2.9%).
• Latvia (+0.3%) and Lithuania (+0.0%) recorded the lowest GDPs.

Amidst mixed GDP numbers, Eurozone inflation accelerated once more.

According to prelim figures, the Eurozone’s annual rate of inflation accelerated from 3.4% to 4.1%. Economists had forecasted a pickup to 3.7%.

According to Eurostat,

• Forecasts project Energy to have the highest annual rate in October of 23.5% compared with 17.6% in September.
• For services, the annual rate of inflation is expected to be 2.1% compared with 1.7% in September.
• The annual rate of inflation for non-energy industrial goods is expected to soften from 2.1% in September to 2.0% in October.
• Food, alcohol, & tobacco is expected to see the annual rate of inflation stable at 2.0%.

Month-on-month, consumer prices rose by 0.8% following a 0.5% increase in September.

Other stats

French consumer spending and Italian inflation figures were also out but took a back seat on the day.

Market Impact

Ahead of the trade data, the EUR had risen to a pre-stat and current day high $1.16901 before hitting reverse.

In response to today’s stats, the EUR rose to a post-stat high $1.16756 before falling to a post-stat and current day low $1.16462.

At the time of writing, the EUR was down by 0.25% to $1.16511.

Next Up

Inflation, personal spending, Chicago PMI, and consumer sentiment figures from the U.S will draw interest.

Expect inflation and personal spending to have the greatest impact on the markets.