Euro zone economy ekes out better-than-expected 0.1% growth in second quarter

The euro portion system eked retired a better-than-expected 0.1% maturation successful the 2nd quarter, compared to the erstwhile three-month stretch, flash information from Eurostat showed Wednesday.

Economists polled by Reuters had anticipated euro portion maturation to flatline successful the period, pursuing a 0.6% enlargement successful the archetypal quarter.

"The slowdown successful euro-zone GDP maturation successful Q2 came arsenic nary astonishment arsenic the boost from tariff front-running waned," Jack Allen-Reynolds, lawman main euro portion economist astatine Capital Economics, said successful a note.

"Overall, the information suggest that the euro-zone has been resilient to the shifts successful US commercialized argumentation truthful far. Front-running of the tariffs gave the system a boost successful Q1, and the interaction of commercialized argumentation uncertainty has seemingly been constricted truthful far," helium added.

U.S. tariffs and their impact person been a apical interest for European economies truthful acold this year. U.S. President Donald Trump's alleged reciprocal tariffs initially came into effect successful April arsenic the 2nd 4th kicked off.

The duties were past nevertheless temporarily reduced, but the past fewer months person been plagued by overmuch uncertainty arsenic negotiations for commercialized statement were underway. Some higher sectoral tariffs, including connected autos and steel and aluminum, person besides been successful effect.

The European Union implicit the play agreed to a commercialized model with the U.S., which includes 15% tariffs being imposed connected the bloc. Some goods are acceptable to beryllium exempt, and levies connected autos person been reduced to the baseline level.

European enslaved yields were small changed aft the information release, with some the French and German 10-year bonds past up by little than 1 ground point.

Earlier connected Wednesday, preliminary information from statistic bureau Destatis showed that output from the European Union's largest economy, Germany, shrank somewhat by 0.1% successful the 2nd 4th of 2025 from the erstwhile 3 months.

The figure, which is adjusted for price, calendar and seasonal variations, aligned with the expectations of analysts polled by Reuters and marked a crisp slowdown compared to a revised 0.3% enlargement successful the archetypal quarter.

Investment successful machinery and equipment, arsenic good arsenic construction, were little successful the 2nd 4th than successful the erstwhile three-month period, portion backstage and authorities depletion expenditures increased, Destatis information signaled.