Euro area kicks off 2019 with unexpected growth spurt

Bloomberg

Europe’s economy began 2019 with an unexpected growth spurt buoyed by France and Spain, easing pressure on the European Central Bank to add stimulus.
The 0.4 percent increase in euro-region gross domestic product during the first quarter reported by Eurostat was twice the pace at the end of last year and more than economists predicted. Strong investment in Spain and buoyant consumer spending in France gave a fillip to expansion in the 19-nation currency bloc.
While the region’s growth rate was below the average of the past five years, it marks the second quarterly acceleration since a downturn in trade and factory activity pulled the economy close to a standstill last summer.
The current company reporting season in Europe is also shaping up to be fairly bullish — Airbus SE’s earnings surged in the first quarter on higher output of its A320 narrow-body jet.
Some countries in the bloc have yet to experience a meaningful turnaround, with Germany expected to see the weakest expansion in six years. The first-quarter figure includes some German data provided to Eurostat by the country’s national statistics office. Official numbers for Europe’s largest economy will be released on May 15.
“The outcome reduces the chances of additional stimulus, such as generous conditions for the newest round of TLTROs, being announced by the Governing Council in June.”
Business confidence continued to soften in April, and the ECB has already said it won’t raise interest rates this year. Policy makers have expressed mixed feelings about whether a rebound initially penciled in for the second half will pan out.