Brussels, 20/08/2008 (Agence Europe) - While European GDP during the second half of the year tended to be downward (-0.2% in the eurozone and -0.1% in the EU27 compared to the previous quarter), other economic indicators fell significantly - a tendency predicted by the European Central Bank (ECB) during its last meeting on interest rates (EUROPE 9720).
According to figures published by Eurostat on Wednesday 20 August for the construction sector, production was down by 0.6% in the eurozone and 1.5% in the EU27 compared to one month earlier, when it had shown an increase of 0.1% and 0.7% respectively. Compared to the same period in 2007, production was down by 2.4% in June 2008 in the eurozone and by 1.8% in the EU27 for the same month. At a monthly rate, production in construction increased in six member states and was down in seven. More significant increases were notched up in Portugal and Romania (+2.9% for each) and in Poland (+2.6%). The most marked falls were recorded in Slovenia (-5.8%), the United Kingdom (-5.4%) and Spain (-3.1%). The building sector showed a fall of 0.6% in the eurozone and of 1.5% in the EU27, after -0.1% and +0.5% respectively in May. Civil engineering was down 0.4% in the eurozone and by 3.2% in the EU27, after +1.5% and +3.7% respectively the month before.
Also, according to estimates published on Monday 18 August by the Statistical Office of the European Communities, the eurozone recorded, in June 2008, a deficit of €0.1 billion in external trade with the rest of the world (as opposed to a surplus of €7.5 billion in June 2007). In the EU27, the trade balance for the month of June 2008 also shows a deficit of €20.1 billion (compared to -€9.1 billion in June 2007).
The eurozone rate of inflation remained at 4% in July this year, unchanged from the month before. In the EU, it had been 4.4% in July, compared to 4.3% in June. Looking at member states individually, the lowest annual rates were noted in the Netherlands (3.0%), Portugal (3.1%) and Germany (3.5%), and the highest were recorded in Latvia (16.5%), Bulgaria (14.4%) and Lithuania (12.4%). Compared to June 2008, annual inflation was up in 15 member states, remained stable in five and fell in seven. (A.B./jl)