Revised data shows euro area GDP growth stalled at 0.1% quarter-on-quarter, with industrial output and employment weakening sharply.
Euro area first-quarter GDP growth was confirmed at 0.1% quarter-on-quarter, matching preliminary estimates but marking the slowest expansion in nine quarters. The annual rate slipped to 0.8%, the weakest since Q2 2024, as industrial production fell 0.9%, its steepest drop in two years.
Germany led growth with a 0.3% quarterly rise, while Spain and Italy expanded 0.6% and 0.2%, respectively. France stagnated, and Ireland contracted 2.0% for a second straight quarter, trimming 0.09 percentage points from the eurozone total. Employment growth slowed to 0.1%, with Germany reporting a fourth consecutive quarterly decline in payrolls.
Business surveys signal firms plan to cut headcount at the fastest pace in five years, amid weakening consumer confidence and eroding real incomes expected to pressure household spending.