Households, investment drove euro zone Q2 growth

* Euro zone Q2 GDP 1.0 pct q/q, 1.9 pct y/y

* Euro zone Q2 growth driven by investment, households

* Euro zone Q1 growth revised up to 0.3 pct q/q, 0.8 pct y/y

* Euro zone PPI 0.2 pct m/m, 4.0 pct y/y

BRUSSELS, Sept 2 (BestGrowthStock) – Household consumption and
investment drove euro zone growth in the second quarter, data
showed on Thursday as the EU statistics office confirmed earlier
estimates and revised upward annualised first quarter growth.

European Union statistics agency Eurostat said gross
domestic product in the 16-nation currency area expanded by 1.9
percent in the second quarter from the same period last year,
compared with a previous reading of 1.7 percent.

Quarter-on-quarter growth was confirmed at 1.0 percent, the
fastest pace in more than three years, compared with 0.4 percent
in the United States and 0.1 percent in Japan.

Encouragingly, Eurostat also revised up growth figures for
the first three months of 20110 to 0.3 percent quarter of
quarter and 0.8 percent year-on-year from previous estimates of
0.2 percent and 0.6 percent respectively.

Euro zone growth driven by very strong figures in Germany,
the currency area’s biggest economy. The crisis-hit Greece was
the only euro zone country to suffer contraction, although
figures for Ireland were not available.

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For a full breakdown of the figures, please click on:

http://epp.eurostat.ec.europa.eu/cache/ITY_PUBLIC/2-02092010-BP/EN/2-02092010-BP-EN.PDF

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But analysts say growth is likely to falter later this year
due to fiscal austerity measures ordered by many governments to
ward off a sovereign debt crisis and declining demand for
foreign goods in the United States and China.

The European Central Bank is expected to extend its
liquidity safety-net on Thursday, delaying its exit from crisis
support as policymakers confront a lopsided euro zone recovery
and vulnerable banks in perimeter countries. [ID:nLDE6810DM]

Eurostat said quarter on quarter household consumption
contributed 0.3 percentage points to the overall figure,
investment another 0.3 points, government spending 0.1 points
and investories 0.2 points. Net trade added 0.1 points.

Separately, Eurostat said euro zone industrial producer
prices increased by 0.2 percent month-on-month in August for an
annual gain of 4.0 percent, boosted mainly by costs of energy,
which were low in the same period of 2009.

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For a full breakdown of the figures, please click on:

http://epp.eurostat.ec.europa.eu/cache/ITY_PUBLIC/4-02092010-AP/EN/4-02092010-AP-EN.PDF

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(Reporting by Marcin Grajewski and Jan Strupczewski, editing
by Luke Baker)

Households, investment drove euro zone Q2 growth