Eurozone Edges Higher in Q3 as Mexico Shrinks on Industrial Slide

Overview

• Eurostat reported eurozone GDP rose 0.2% quarter over quarter in Q3, roughly 1.3% annualized, with consumption offsetting export weakness and German industrial strain.
• Spain grew 0.6% and France 0.5% in the quarter, outpacing Germany and Italy, which were broadly flat and highlighting uneven momentum across the bloc.
• A separate preliminary estimate showed Italy’s GDP contracting 0.1% in Q3 after a 0.1% drop in Q2, with industry retreating and services stagnating.
• Mexico’s GDP fell 0.3% quarter over quarter in Q3, as industrial output dropped 1.5% while services inched up 0.1% and agriculture rose 3.2%, according to Inegi.
• Mexico’s downturn reflects U.S. trade measures including a 30% tariff on some products and a 90-day commercial truce extension announced by President Claudia Sheinbaum, with state-led investment still struggling to attract foreign capital.