2018.08.1406:47:00UTC+00Eurozone Q2 GDP Growth Exceeds Initial Estimate

The euro area economy expanded more than initially estimated in the second quarter, flash estimate published by Eurostat showed Tuesday.

Gross domestic product climbed 0.4 percent sequentially, the same pace of increase as seen in the first quarter, but revised up from the initial estimate of 0.3 percent.

On a yearly basis, GDP growth eased less-than-estimated to 2.2 percent from 2.5 percent a quarter ago. The second quarter rate was revised up from 2.1 percent.

Eurostat is slated to release revised GDP data with main aggregates on September 7.

The upward revision to GDP growth in the second quarter will make policymakers at the European Central Bank more confident that they are right to be winding down their asset purchases, Jack Allen, an economist at Capital Economics, said.

Another report from Eurostat revealed that industrial production dropped in the currency bloc as all major components excluding energy contracted in June from May.

Industrial output fell 0.7 percent on month in June, reversing May's 1.4 percent rise. Economists had forecast a 0.4 percent drop for June.

Year-on-year, industrial production growth slowed marginally to 2.5 percent in June from 2.6 percent in May. Output was forecast to expand 2.4 percent.