The preliminary flash data were unrevised in the second look at third quarter GDP. A 0.1 percent quarterly fall matched the earlier print which marked the first decline in total output in three years. Annual growth was cut from 0.5 percent in the previous quarter to just 0.1 percent, its worst outturn since the first quarter of 2021.

The overall quarterly decline reflected contractions in a number of countries, notably Germany (0.1 percent) alongside Ireland (1.8 percent), Finland (0.9 percent) and Austria (0.6 percent). Estonia (minus 0.2 percent) posted a remarkable seventh successive drop. Spain (0.3 percent) achieved moderately respectable growth but France (0.1 percent) only just kept its head above water and Italy (0.0 percent) stagnated.

In sum, there is nothing in the updated third quarter data to impact a very subdued picture of the Eurozone GDP. On current trends, the economy will be in recession by year-end which, while probably only mild, should help the ECB get inflation back down to target. Accordingly, the latest data still mean that official interest rates have likely peaked. They also put the Eurozone RPI at minus 3 and the RPI-P at minus 4, both measures showing overall economic activity essentially matching market expectations.

No revisions are expected to the preliminary flash data leaving a 0.1 percent quarterly contraction and a 0.1 percent annual growth rate.

Gross domestic product (GDP) is the broadest measure of aggregate economic activity and encompasses every sector of the economy. There are two preliminary estimates which are based on only partial data. The first is the preliminary flash, introduced in April 2016 and limited to just quarterly and annual growth statistics for the region as a whole. This is issued close to the end of the month immediately after the reference period. The second flash report, released about two weeks later, expands on the first to include growth figures for most member states but still provides no information on the GDP expenditure components.

GDP is the all-inclusive measure of economic activity. Investors need to closely track the economy because it usually dictates how investments will perform. Stock market Investors like to see healthy economic growth because robust business activity translates to higher corporate profits. The GDP report contains information which not only paints an image of the overall economy, but tells investors about important trends within the big picture. These data, which follow the international classification system (SNA93), are readily comparable to other industrialized countries. GDP components such as consumer spending, business and residential investment illuminate the economy's undercurrents, which can translate to investment opportunities and guidance in managing a portfolio.

Each financial market reacts differently to GDP data because of their focus. For example, equity market participants cheer healthy economic growth because it improves the corporate profit outlook while weak growth generally means anemic earnings. Equities generally drop on disappointing growth and climb on good growth prospects.

Bond or fixed income markets are contrarians. They prefer weak growth so that there is less of a chance of higher central bank interest rates and inflation. When GDP growth is poor or negative it indicates anaemic or negative economic activity. Bond prices will rise and interest rates will fall. When growth is positive and good, interest rates will be higher and bond prices lower. Currency traders prefer healthy growth and higher interest rates. Both lead to increased demand for a local currency. However, inflationary pressures put pressure on a currency regardless of growth.