Eurozone economic dip milder than expected in first quarter

Eurostat said gross domestic product in the 19 countries sharing the euro contracted 0.3 percent quarter-on-quarter for a 1.3 percent year-on-year decline. These compared with estimates three weeks ago of respectively -0.6 percent and -1.8 percent, according to cnbc.com.

Italy grew marginally, against a previous estimate of a dip, and France dipped, against an earlier estimate of growth. Germany was very slightly weaker, while a number of smaller countries were more positive.

Eurostat said rising inventories added 0.7 percentage points to the overall quarterly figure in the January-March period and investment and trade each added another 0.1 points.

Falling household consumption, hit by pandemic lockdowns including of shops across Europe, subtracted 1.2 points and government spending was neutral.

The 0.3 percent GDP contraction comes after a 0.6 percent GDP quarterly fall in the previous three months, meaning the eurozone economy was in its second technical recession since the start of the COVID-19 pandemic.

Eurostat said also employment fell 0.3 percent quarter-on-quarter in January-March and was down 1.8 percent year-on-year.