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Slower euro zone growth gives ECB ammunition to act in December

The 19-member euro zone grew by 0.3 percent in the third quarter.

Slower euro zone growth gives ECB ammunition to act in December

Economic growth in the euro zone slowed more than expected in the third quarter as weaker foreign trade held back leaders Germany and France, and with much of the rest of the bloc underperforming.

The 19-member euro zone grew by 0.3 percent in the third quarter, the European Union's statistics office Eurostat said on Friday, reinforcing expectations that the European Central Bank will expand its monetary stimulus next month.

"The euro zone recovery is continuing, but it seems like driving with the handbrake on," said ING economist Vanden Houte.

"We believe that the ECB has actually already made up its mind and that today's figures are not strong enough to deter them from going ahead with the intended easing."

On Thursday, ECB President Mario Draghi underlined the bank's readiness to extend money printing, warning that a key measure of economic health - price inflation - was flagging. ECB policymakers' next key meeting is on Dec. 3.

Highlighting the weak price pressures in much of the euro zone, figures from Spain showed inflation there fell 0.7 per cent year-on-year in October.

Spain's economic growth is otherwise a rare euro-zone bright spot, expanding by 0.8 per cent according to preliminary data issued earlier. Its recovery, however, is failing to bridge a growing gulf between rich and poor, storing up problems for an already-strained social security system.

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