Two Biggest Euro Economies Show Muted Growth as ECB Ponders

German Chancellor Angela Merkel (L) talks with French Foreign Minister Laurent Fabius (C) and French President Francois Hollande (R) at the start of the Valletta Summit on Migration in Valletta, Malta, November 11, 2015. REUTERS/Yves Herman

Lackluster growth in the euro area’s two largest economies that has so far proved insufficient to reignite inflation provided more evidence for the European Central Bank to chew over as it examines the need for fresh stimulus.

Germany’s gross domestic product rose a seasonally adjusted 0.3 percent in the three months ended Sept. 30, after increasing 0.4 percent in the previous quarter, the Federal Statistics Office in Wiesbaden said on Friday. French GDP also expanded 0.3 percent, having stagnated in the April-June period, a separate release earlier showed. GDP figures for the euro area are scheduled to be published later on Friday, with economists predicting the expansion held at 0.4 percent.

With a slowdown in emerging markets testing the strength of the recovery in the 19-nation currency union, the data will provide ECB President Mario Draghi more visibility heading into December’s monetary policy meeting. The central banker has signaled more stimulus is in the pipeline, citing renewed downside risks for growth and the region’s inflation outlook, which risks becoming entrenched well below the ECB’s goal of 2 percent.