Euro Area Economy Shrinks 0.3%; German Construction Slumps

Arthi Gupta
06 Mar, 2012
New York City

The OECD area inflation eased to a 10-month low in January. The euro area economy contracted in the fourth quarter. EU private sector productivity rose in February. Norwegian consumer sentiment improved in the first quarter.

[R]2:00 PM Frankfurt – The OECD area inflation eased to a 10-month low in January. The euro area economy contracted in the fourth quarter. EU private sector productivity rose in February. Norwegian consumer sentiment improved in the first quarter.[/R]

OECD Area Inflation Slows

Annual inflation in the Organization for Economic Cooperation and Development area eased to 2.8% in January from 2.9% in December, latest data showed, the lowest since March 2011.

From a month ago, consumer prices in the OECD area rose 0.2% in January compared to the 0.1% increase in December.

Euro-zone GDP Shrinks

The euro-zone economy contracted 0.3% in the fourth quarter compared to the 0.1% growth in the third quarter, second estimates from Eurostat confirmed today.

From a year ago, the gross domestic product grew 0.7% in the fourth quarter following a 1.3% expansion in the third quarter.

From a quarter ago, household consumption fell 0.4%, exports declined 0.3% and imports were down 1.2% in the fourth quarter.

EU Private Sector Productivity Climbs

Productivity in the European Union''s private sector economy rose in February, data from a survey by Markit Economics showed.

The seasonally adjusted purchasing managers'' index for productivity, which measures output per employee, climbed to 50.5 in February from 50.2 in January.

German Construction Activity Drops

The seasonally adjusted purchasing managers'' index for the German construction sector slumped to 35.3 in February from 53.2 in January, data from a survey by Markit Economics showed today.

Residential construction and commercial building activity declined at the fastest pace in for two years in February.

Norwegian Confidence Improves

Norway''s consumer sentiment index improved to 15.5 in the first quarter, up from the revised 13 points in the fourth quarter of 2011, data released by the Finance Norway and survey group TNS Gallup showed.