Wednesday 18 September 2019

Emissions tests slow Europe's economy

Capital Economics said in a report on the numbers that it seemed likely that the disruption stemmed from emissions testing on new car production. Photo: Reuters
Capital Economics said in a report on the numbers that it seemed likely that the disruption stemmed from emissions testing on new car production. Photo: Reuters

David Chance

Data from the EU's statistical office showed that the eurozone's economy grew by 0.2pc in the third quarter, half the pace of the second quarter as economic activity in Germany, which accounts for more than fifth of the EU's output, dropped by 0.2pc.

Capital Economics said in a report on the numbers that it seemed likely that the disruption stemmed from emissions testing on new car production.

The new EU car tests became mandatory for all new models on September 1 and were introduced in the wake of an emissions cheating scandal. Growth numbers were also dragged down by Italy whose economy flatlined in the quarter.

There was no new third-quarter figure given for Ireland which grew 2.5pc in the second quarter of the year, by far the fastest pace in the euro area.

In September, seasonally adjusted industrial production fell by 0.3pc in the euro area - a slowdown from 1.1pc growth in August.

Ireland once again led the pack with industrial output rising a whopping 12.9pc from a year earlier.

This year will mark the fifth consecutive year of eurozone growth although the numbers have started to soften since the summer.

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