Eurozone: Economic data has weakened – Danske Bank

Yesterday, the flash Q2 GDP growth estimate for the euro area disappointed, as it showed growth slowed to 0.3% q/q from 0.4% in Q1, against expectations of an unchanged print, points out the research team at Danske Bank.

Key Quotes

“Economic data has weakened in the euro area and growth is significantly slower this year than last year, where growth was 0.7% q/q on average.”

“HICP core inflation rose, at least on paper, from 0.9% to 1.1%, but looking at the second decimal place, the increase was from a high 0.9% (0.94%) to a low 1.1% (1.07%). The data does not change anything for the ECB, which is on hold ' at least through the summer of 2019'”