Euro Area Pushed Into Recession as Trade Slows, Spending Drops

The euro-area economy was pushed into a recession for the second time in four years as trade slowed and government spending declined.

Gross domestic product in the 17-nation currency bloc slipped 0.1 percent in the third quarter from the previous three months, when it fell 0.2 percent, the European Union’s statistics office in Luxembourg said today, confirming an initial estimate published on Nov. 15. Gross fixed capital formation dropped 0.7 percent from the previous three months, when it fell 1.8 percent, while consumer spending was unchanged. Government spending declined 0.2 percent after a 0.1 percent drop in the second quarter.