Eurozone economy estimated to have grown by 0.4% in second quarter - Eurostat

The Eurozone economy grew by 0.4% in the April-June period, according to a second estimate from Eurostat released on Friday. Analysts at Capital Economics noted that despite challenges from an energy crisis triggered by ongoing conflicts in the Middle East, the 21-member currency area's economy maintained a growth rate in line with its trend during the second quarter.

Capital Economics forecasted that Eurozone GDP would continue its moderate growth pace throughout the remainder of 2026. The third estimate of the second-quarter GDP is expected to be released on September 7. While a detailed breakdown of the GDP at the Eurozone level has not been published yet, national data suggested an increase in household spending.

This rise in spending could indicate that consumers were prioritizing expenditure over saving as their real incomes decreased. The second-quarter employment in the Eurozone expanded by 0.1% quarter-on-quarter, while productivity measures are projected to increase by 0.3%. Capital Economics expects these productivity improvements to persist into the beginning of the current quarter.