Euro Area GDP Flat in Q2; Inflation Falls to Lowest Annual Rate Since Oct. 2009 (FXE)

CurrencyShares Euro Trust (NYSE: FXE) is on watch Thursday following data out of the European Union showing Q2 GDP growth was largely flat in Q2, from 0.2 percent growth reported in the prior quarter. The following was issued by Eurostat earlier in the day:

Seasonally adjusted GDP remained stable in the euro area1 (EA18) and rose by 0.2% in the EU281 during the second quarter of 2014, compared with the previous quarter, according to flash estimates published by Eurostat, the statistical office of the European Union. In the first quarter of 2014, GDP grew by 0.2% in the euro area and by 0.3% in the EU28.

Compared with the same quarter of the previous year, seasonally adjusted GDP rose by 0.7% in the euro area and by 1.2% in the EU28 in the second quarter of 2014, after +0.9% and +1.4% respectively in the previous quarter.

Euro area annual inflation was 0.4% in July 2014, down from 0.5% in June. This is the lowest annual inflation rate since October 2009. In July 2013 the rate was 1.6%. Monthly inflation was -0.7% in July 2014. European Union1 annual inflation was 0.6% in July 2014, down from 0.7% in June. A year earlier the rate was 1.7%. Monthly inflation was -0.5% in July 2014.

These figures come from Eurostat, the statistical office of the European Union.

In July 2014, negative annual rates were observed in Bulgaria (-1.1%), Greece (-0.8%), Portugal (-0.7%), Spain (-0.4%) and Slovakia (-0.2%). The highest annual rates were recorded in Austria (1.7%), Romania (1.5%) and Luxembourg (1.2%). Compared with June 2014, annual inflation fell in thirteen Member States, remained stable in six and rose in eight.

The largest upward impacts to euro area annual inflation came from restaurants & cafés (+0.08 percentage points), rents (+0.06 pp) and maintenance of vehicles (+0.05 pp), while fruit (-0.13 pp), vegetables and telecommunications (-0.11 pp each) had the biggest downward impacts.

You May Also Be Interested In

• US dollar surges to new 34-year high vs yen after hotter-than-expected inflation data
• US business inventories pick up in February
• NAHB Housing Market Index (Apr) 51 vs 51 Expected