Eurozone Final Q3 GDP Remains Unchanged, but All Other Components Tick Lower
The final Eurozone GDP report for Q3 2018 was released a while ago and, at first glance, it looked alright. The headline number for the final Q3 GDP reading came as expected at 0.2%, but all the other sub-components of this report were lower than expected and lower than the previous reading. Let’s just list the numbers below:
| Actual | Expected | Previous |
| Eurozone Final Q3 GDP | 0.2% | 0.2% | 0.2% |
| Eurozone Final 2018 GDP | 1.6% | 1.7% | 1.7% |
| Household Consumption Q3 | 0.1% | 0.2% | 0.2% |
| Government Expenditure Q3 | 0.2% | 0.3% | 0.4% |
Even the final Q3 GDP is not as good as it looks. It is unchanged at 0.2% from the first estimate, but it is down from the Q2 GDP. In Q2, the Eurozone GDP grew by 0.4%, while in Q3 growth slowed to just 0.2%. The final GDP for the entire year also ticked lower to 1.6% from 1.7% previously.
Growth in household consumption was also slashed in half at 0.1% from 0.2% in the prelim reading, so it is almost flat. Government expenditure also declined to 0.2% from 0.4% in the first reading, so everything is lower than previously. EUR/USD lost around 15 pips on this report, but has left this report behind already.
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