Euro Area Growth Nearly Halts; Dutch Retail Sales Flat

Arthi Gupta
16 Aug, 2011
New York City

The euro area economic growth eased more than estimated in the second quarter. Euro-zone trade surplus widened, Dutch retail sales remained unchanged and Spanish industrial new orders growth slackened in June. Swedish jobless rate increased in July.

[R]2:30 PM Frankfurt – The euro area economic growth eased more than estimated in the second quarter. Euro-zone trade surplus widened, Dutch retail sales remained unchanged and Spanish industrial new orders growth slackened in June. Swedish jobless rate increased in July.[/R]

Euro-zone GDP Eases, Surplus Widens

Euro-zone economic growth eased more than estimated in the second quarter, according to flash estimates published by Eurostat today.

Gross domestic product rose 0.2% in the second quarter, slower than the 0.8% expansion in the first quarter, data from the Eurostat showed on Tuesday.

Compared with the same quarter of the previous year, seasonally adjusted GDP increased 1.7% in the second quarter, after 2.5% growth in the previous three months.

The EU27 also expanded 0.2% sequentially in the second quarter, taking the annual growth to 1.7%.

Separately, euro-zone trade surplus widened in June, according to data released by Eurostat today.

On a seasonally adjusted basis, exports fell 4.7% and imports dropped 4.1% in June. The trade balance showed a deficit of €1.6 billion for June compared to the €0.8 billion shortfall in May.

The EU27 trade deficit for June was €12.2 billion as against the revised €12.3 billion shortfall in May. Exports and imports rose 2% each from the year-ago period.

German GDP Slows

The German economic growth slowed more than estimated in the second quarter.

The gross domestic product grew 0.1% in the second quarter, after adjusting to seasonal variations following a downwardly revised 1.3% expansion in the first quarter, initially estimated at 1.5%.

Annually, the GDP climbed 2.8% in the second quarter following a downwardly revised 5% growth in the first quarter, revised down from 5.2% reported earlier.

Spanish GDP Growth Slackens

Spanish gross domestic product grew 0.2% sequentially in the second quarter, following the 0.3% rise in the first quarter, flash data published by the statistics office INE showed.

On an annual comparison, the growth eased to 0.7% in the second quarter from 0.8% in the prior quarter.

Portugal Economy Flat

The Portuguese Gross Domestic Product remained flat on a quarterly basis in the second quarter after declining 0.6% in the first quarter, flash estimates from Statistics Portugal showed on Tuesday.

From a year ago, GDP fell 0.9% in the second quarter as against the 0.6% drop in the first quarter.

Swedish Jobless Rate Increases

Sweden''s unemployment rate increased for a second consecutive month in July, data from the Public Employment Service showed.

The jobless rate rose to 4.2% in July from 4.1% in June. The number of registered unemployed totaled 365,410 at the end of the month, less than last year''s 406,141.

Employers reported 36,000 new vacancies in July, 6,000 more than July last year.

Spanish Leading Indicator Falls

Spain''s leading economic index decreased to 106.9 in June from 107.1 in May, data from a survey conducted by the Conference Board showed on Tuesday. The latest fall was the first in the past four months.

Dutch Retail Sales Unchanged

Retail sales in the Netherlands remained unchanged in June, after increasing 0.7% in May, according to data released by the Central Bureau of Statistics today.

Retail sales of food and beverages rose 2.7% in June as against the 0.5% decline in May. Sales of non-food products fell 2.7% in June compared to the 0.4% drop in May.

Spanish New Industrial Orders Slacken

Spanish new industrial orders grew 4.9% on a yearly basis in June after expanding 8.7% in May, data from the statistics office INE showed.

Industrial turnover growth slowed to 5.1% from a year ago in June from 8.6% in May.