Euro Zone Output Grows, Germany Lowers Growth Outlook to 1%

Arthi Gupta
17 Oct, 2012
New York City

Euro zone construction output climbed in August but German production fell 2.8%. Germany slashed its economic growth outlook for 2013 and investor confidence in Switzerland improved in October.

[R]2:45 PM Frankfurt – Euro zone construction output climbed in August but German production fell 2.8%. Germany slashed its economic growth outlook for 2013 and investor confidence in Switzerland improved in October.[/R]

Euro Zone Output Grows

Euro zone construction output climbed 0.7% from a month ago in August compared to the 0.1% increase in July, Eurostat reported today.

Building construction increased 1.2% in the euro area in August, after a 0.3% drop in July.

Construction output rose 10.4% in Portugal, 5.3% in Italy and 0.6% in Spain but fell 2.8% in Germany in August.

Annually, construction output declined 5.5% in August, following a 6.2% decline in July.

In the EU27, construction production rose 0.2% in August compared with the 0.1% drop in July.

From a year ago, production dropped 6.8% in the EU27 in August.

German Outlook Cut

Germany slashed its economic growth outlook to 1% from 1.6% for 2013.

The gross domestic product is estimated to expand 0.8% this year compared to the earlier projection of 0.7%, according to the German Economy Minister Philipp Roesler. The economy expanded 3% in 2011.

Inflation is forecasted to ease to 1.9% next year from 2% this year.

Swiss Confidence Improves

Investor confidence in Switzerland improved in October, a survey by the Center for European Economic Research showed today.

Economic expectations for Switzerland have improved by 6 points to the minus 28.9 in October. The ZEW-CS-Indicator of Economic Sentiment increased by a total of 14.5 points since June 2012.

The assessments of the current economic environment deteriorated in October and the indicator dropped 9 points to -4.4. This is the first time since March 2012 that the indicator fell into negative territory.