Economic Buzz: Eurozone GDP grows marginally in Q2

The euro area economy grew at a marginal pace in the second quarter as initially estimated, and companies generated jobs modestly, official data showed on Thursday.

Another data from Eurostat showed that industrial production remained weak in the second quarter as the positive impact from frontloading of orders from the US faded.

Gross domestic product grew 0.1 percent sequentially, after rising 0.6 percent in the first quarter, flash estimates from Eurostat showed.

On a yearly basis, economic growth slowed to 1.4 percent, in line with estimate, from 1.5 percent in the prior quarter.

The EU27 GDP grew 0.2 percent from the previous quarter and expanded 1.5 percent from the prior year.

Further, data showed that the number of employed persons increased 0.1 percent, which was weaker than the 0.2 percent rise in the first quarter. Year-on-year, growth in employment held steady at 0.7 percent.

Industrial output fell 1.3 percent in June from May, when output was up 1.1 percent, Eurostat reported. All components of production, except energy contracted in June.

Production of non-durable consumer goods showed the biggest fall of 4.7 percent, followed by a 2.2 percent drop in capital goods output.

Output of durable consumer goods and intermediate goods fell 0.6 percent and 0.2 percent, respectively. Meanwhile, energy output increased 2.9 percent in June.

The annual growth in industrial production eased sharply to 0.2 percent in June from 3.1 percent in May.

Industrial production in the EU27 fell 1.0 percent month-on-month in June but increased 0.5 percent from the last year.

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