Eurozone: Q3 GDP and inflation in focus – Nomura

Analysts at Nomura expect the first reading of euro area Q3 GDP growth to be 0.6% q-o-q after 0.7% q-o-q in Q2.

Key Quotes

“While we do not get any underlying expenditure details in this release, we expect investment to have made the largest contribution to GDP growth in Q3. We also expect exports to have pushed up GDP growth as global economic momentum remains strong. If the result is in line with our expectations, the data would be above the ECB’s Q3 GDP forecast (0.5% q-o-q).” 

“Euro area preliminary October inflation: We expect the flash reading of euro area HICP inflation to increase to 1.6% y-o-y in October from 1.5% y-o-y in September. This is mainly due to the energy component, but the non-energy industrial goods component should also help to push up headline inflation. Indeed, partly for this reason core inflation we also expect it to climb to 1.2% y-o-y from 1.1% y-o-y.”