GDP in Austria and Spain Continues to Show Expansion

Talking Points:

• Spain’s 3Q year-on-year GDP expanded 3.4%, as expected
• Austria’s 3Q year-on-year GDP expanded 1%, above expectations
• Market awaits Eurozone’s CPI later today for further data

According to preliminary estimates released today by the Oesterreichische Nationalbank, Austria’s Gross Domestic Product (GDP) grew 0.3 percent in the third quarter of 2015 over the previous quarter, as was expected by economists. The year-on-year change in GDP was 1.0 percent, above the expected 0.3 percent, and the prior upwardly revised 0.7 percent, marking the highest growth rate since Q4 2013. Investment increased 1.4 percent from the prior Q2 reading of 1.1 percent, while external demand put downward pressure on the expansion. In this context it’s important to note that trade with other European countries accounts for the majority of Austrian imports and exports.

Spanish preliminary GDP estimates signaled growth eased to 0.8 percent in Q3 from an eight year high expansion of 1.0 percent in Q2, as was widely expected by economists. Year on year growth was up to 3.4 percent, above the prior 3.1 percent, and marked the best number since Q4 in 2007.

With both European nations GDP estimates signaling continuing expansion, the market will shift its focus to the Eurozone’s CPI data later today for further information on the economy, a week after Mario Draghi’s perceived dovish ECB press conference, in which he signaled that the ECB may extend or expand QE, with the possibility of a rate cut to the Eurozone’s deposit rate on deteriorating economic outlook.