German growth slows in Q3 and Italy's disappoints forecasts, but in a twist for Mario Draghi as he primes the markets for an expected ECB policy easing next month, the French economy shows something of a rebound. Kirsty Basset reports.
Europe's largest economy is starting to feel the pain of a slowdown in emerging markets. In September, German industrial output dropped by the most in over a year, dragging on economic growth of 0.3 per cent. NAB's Nick Parsons. (SOUNDBITE)(English) NICK PARSONS, GLOBAL CO-HEAD OF FX STRATEGY AT NATIONAL AUSTRALIA BANK SAYING: "If you're looking for Eurozone GDP numbers to cheer you up, you're probably looking in the wrong place. Not a particularly cheery set of numbers." At the beginning of the year, Germany proved surprisingly resilient - but now it appears the slowdown, led by China, is beginning to bite. (SOUNDBITE)(English) NICK PARSONS, GLOBAL CO-HEAD OF FX STRATEGY AT NATIONAL AUSTRALIA BANK SAYING: "The pass through from emerging markets back into core Europe took longer than we might have anticipated but was certainly very sharp indeed when it arrived." France saw growth of 0.3 per cent, in line with expectations, while Italy fell short with just 0.2 per cent growth. GDP for the 19 euro zone countries expanded 0.3 per cent, below expectations of a 0.4 percent quarterly rise. It comes a day after ECB President Mario Draghi signalled further easing could be on the way in time for Christmas. Which stands in stark contrast to U.S. monetary policy, where expectations of a rate hike - as soon as December, are growing.