The euro area economy<\/span> logged only a marginal growth in the second quarter reigniting fears of a recession after the net trade acted as a drag on growth. <\/p>\n
Revised estimate published by the Eurostat on Thursday showed that the 20-nation currency bloc grew by a marginal 0.1 percent in the June quarter. The rate was revised down from 0.3 percent estimated on August 16.<\/p>\n
Nonetheless, the first quarter figure was revised up to 0.1 percent from the previous estimate of nil growth. <\/p>\n
The expenditure-side breakdown for the second quarter, which was released for the first time, revealed that household consumption remained flat for the second straight quarter.<\/p>\n
At the same time, government spending gained 0.2 percent, in contrast to the 0.6 percent decrease a quarter ago. <\/p>\n
Gross fixed capital formation posted 0.3 percent growth, the same rate as seen in the first quarter. <\/p>\n
Suggesting that the net trade was a drag on GDP growth, exports fell 0.7 percent after remaining flat in the prior quarter. By contrast, imports gained 0.1 percent following a 1.3 percent decrease in the preceding period. <\/p>\n
With business<\/span> surveys having turned down sharply in July and August, construction and industry struggling and the labor market easing, the euro area is likely to slip into a recession in the second half of the year, Capital Economics economist Andrew Kenningham said. <\/p>\n
The statistical office also downgraded the second quarter annual economic growth rate to 0.5 percent from 0.6 percent. This followed a 1.1 percent rise in the first quarter. <\/p>\n
Among big-four economies, Germany, the largest euro area economy, flat-lined in the second quarter and Italy contracted 0.4 percent. Meanwhile, France and Spain expanded 0.5 percent and 0.4 percent, respectively. <\/p>\n
Data also showed that quarterly growth in employment eased to 0.2 percent in the second quarter from 0.5 percent a quarter ago. Annually, employment rose 1.3 percent after rising 1.6 percent. <\/p>\n
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