Eurozone back in black

Economic growth returned to the euro zone in the third quarter after five consecutive declining quarters, but the bounce was weaker than had been expected, leaving economists to question the strength and sustainability of the 16-nation region's recovery. Euro-zone gross domestic product (GDP) rose by 0.4% compared to the previous three months, the European Union statistics agency Eurostat said in a preliminary estimate. Compared to the same period last year, the September quarter's GDP fell by 4.1%. Economists had been looking for a 0.6% quarterly rise and a 3.9% year-on-year decline.
Germany and France reported further growth in the third quarter. Italy too started to expand for the first time in more than a year even as Spain and UK continue to struggle. Germany, France and Italy account for more than two-thirds of aggregate euro zone output, and the third quarter marked a turning-point for the common currency area, which spans 16 countries.
Germany and France, which both emerged from recession in the second quarter with 0.3% growth, posted quarterly expansion rates of 0.7% and 0.3% respectively in the three months to end-September. Italian GDP turned positive with a rise of 0.6% quarter over quarter, following five quarters of contraction. The national data indicated that improving exports helped lead the region back to growth, while consumers continued to keep a tight grip on their wallets.