German Economy Slows Less Than Forecast as Italian Growth Stalls
- German GDP grew 0.4% in 2Q, Italy unexpectedly stagnated
- Figures at 11 a.m. set to confirm modest euro-area recovery
What European Earnings Season Signals for Investors
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German growth slowed less than predicted in the second quarter while Italian output unexpectedly stagnated, signaling diverging fortunes for two of the region’s biggest economies as they brace for any fallout from Britain’s decision to leave the European Union.
Germany’s gross domestic product rose a seasonally-adjusted 0.4 percent in the three months through June, following an increase of 0.7 percent, the Federal Statistics Office in Wiesbaden said on Friday. That’s twice the rate economists forecast in a Bloomberg survey. Italy’s economy unexpectedly stalled after expanding 0.3 percent in the previous quarter. Analysts predicted growth of 0.2 percent.