• Prior +0.2%

That’s a solid showing even as March data is likely weakened by the impact of the Middle East conflict. Relative to the same quarter a year ago, the quarterly performance here shows a 0.5% increase in GDP as well. The German stats office notes that both household and government final consumption expenditure expanded on the quarter with exports also seen higher. On the final point, could it be the case of businesses frontloading shipments before the US-Iran war got worse?

We’ll have to see. But all else being equal, Q2 is going to be a rough period for the euro area economy in general. That especially as the war continues to drag on into May with the Strait of Hormuz staying closed.

This article was written by Justin Low at investinglive.com.