UK GDP Growth Accelerated In First Quarter, Eurozone Employment Growth Extended to 16th Consecutive Quarter

Bridgette Randall
15 May, 2025
London

European markets declined, and investors shifted their focus to the fresh batch of earnings. 

Benchmark indexes in Frankfurt, Paris, Milan, and London edged lower after enthusiasm about the U.S.-China deal faded. 

 

UK Q1 GDP Growth Surpassed Expectations

On the economic front, the U.K.'s first quarter GDP growth accelerated to a 0.7% increase from the previous quarter, the Office for National Statistics reported Thursday. 

The sustained expansion in the service sector supported the faster-than-expected increase in economic activities by 1.3% on an annual basis. 

Meanwhile, manufacturing activities expanded 1.1%, and construction activities stayed unchanged. 

 

Eurozone Employment Growth Accelerated in First Quarter

The number of employed people in the eurozone increased by 0.3% to 171.79 million in the first quarter, accelerating from 0.1% in the previous quarter, according to a report released by Eurostat on Thursday. 

On an annual basis, the eurozone employment increased by 0.8%. 

Employment increased in Spain by 0.8%, in Czechia by 0.5%, in Finland by 0.4%, in Sweden by 0.3%, and in Luxembourg by 0.1%, but fell in Estonia by 0.8%, in Poland by 0.6%, in France by 0.1%, in the Netherlands by 0.1%, and in Lithuania by 0.1%.

 

German Wholesale Inflation Rises at the Slowest Pace In 5 Months

Germany's wholesale price increased for the fifth consecutive month in April, but the rise was the slowest over the period, according to the latest data released by the Federal Statistical Office. 

Wholesale prices increased 0.8% in April, weaker than the 1.3% rise in the previous month and the slowest pace since December. 

On a monthly basis, wholesale prices declined 0.1%, following a fall of 0.2% in March. 

 

Europe Indexes and Yields

The DAX index decreased by 0.4% to 23,424.04, the CAC-40 index edged lower 0.4% to 7,802.03, and the FTSE 100 index declined 0.4% to 8,547.55.

The yield on 10-year German bonds inched lower to 2.68%, French bonds decreased to 3.36%, the UK gilts moved down to 4.71%, and Italian bonds edged lower to 3.69%.

The euro increased to $1.12; the British pound was higher at $1.33; and the U.S. dollar was lower and traded at 83.78 Swiss cents.

Brent crude decreased $1.92 to $64.17 a barrel, and the Dutch TTF natural gas was higher by €0.45 to €35.21 per MWh.

 

Europe Movers

Allianz AG eased 3.2% to €340.50 after the German insurance and financial services company reported record operating profit in the first quarter but fell short of expectations. 

ThyssenKrupp AG plunged 9.4% to €8.55 after the German industrial engineering and steel production company reported sharply lower than expected earnings in the first half ending in March.

Compass Group plc advanced 1.6% to 2,581 pence after the UK-based contract food services provider for airlines reported better-than-expected first-half results ending in March.

The catering company also reiterated its annual outlook but cited improvement in operating margin. 

Iveco Group NV decreased 4.4% to €15.56 after the Italy-based vehicle maker and the defense company reported a 10% decline in revenue and retained its annual outlook on strong orders. 

RTL Group SA traded up 0.5% to €32.30 after the Luxembourg-based and Germany- and France-focused TV and radio station operator and streaming services provider reported first-quarter 2025 results.

The company reported a decline in revenue in the latest quarter, an increase in paying subscribers to 7.1 million, and reiterated its  annual outlook. 

Revenue is expected to increase to around €6.45 billion, compared to €6.25 billion a year earlier, and the company intends to pay out dividends of at least 80% of its adjusted full-year net earnings.