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INSTANT VIEW 1-Euro zone Q3 growth 0.4 pct q/q, 1.9 pct y/y

Nov 12 (Reuters) - Quarterly euro zone economic growth more than halved in the third quarter against the previous three months, data showed on Friday, in line with market expectations. Eurostat also reported that euro zone industrial production fell 0.9 percent month-on-month, but grew 5.2 percent year-on-year. ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ For story: For full data on GDP see: http://epp.eurostat.ec.europa.eu/cache/ITY_PUBLIC/2-12112010-BP/EN/2-12112010-BP-EN.PDF For full data on industrial production see: http://epp.eurostat.ec.europa.eu/cache/ITY_PUBLIC/4-12112010-AP/EN/4-12112010-AP-EN.PDF ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ MARKET REACTION * For any foreign market reaction click on. * For more details of currency market moves see. * For any bond market reaction, click on LINKS For further details, Reuters 3000 Xtra users can click on: http://europa.eu.int/comm/eurostat/ or a one-page snapshot of real-time G7, euro zone and Swiss economic data releases, click on ((marcin.grajewski@thomsonreuters.com; +322 2876830; Reuters Messaging: marcin.grajewski.reuters.com@reuters.net)) Keywords: EUROZONE GROWTH/ Nov 12 (Reuters) - Quarterly euro zone economic growth more than halved in the third quarter against the previous three months, data showed on Friday, in line with market expectations. Eurostat also reported that euro zone industrial production fell 0.9 percent month-on-month, but grew 5.2 percent year-on-year. ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ For story: For full data on GDP see: http://epp.eurostat.ec.europa.eu/cache/ITY_PUBLIC/2-12112010-BP/EN/2-12112010-BP-EN.PDF For full data on industrial production see: http://epp.eurostat.ec.europa.eu/cache/ITY_PUBLIC/4-12112010-AP/EN/4-12112010-AP-EN.PDF ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ ECONOMISTS' COMMENTS JUERGEN MICHELS, ECONOMIST AT CITIGROUP "The data is more or less as expected. Large countries are somewhat worse than expected and peripheral countries are somewhat better than expected. "However, the data still shows a huge divergence. From Germany doing well and Greece showing a further contraction." RALPH SOLWEEN, ECONOMIST AT COMMERZBANK "These figures are roughly in line with expectation, with Germany still going stronger than the average. What is interesting is what is happening on the periphery, the surprise being that Portugal is still growing despite its consolidation efforts. "We think this recovery will go on. Germany will still be an outperformer in the euro area and grow stronger than core countries such as France. We think the growth of peripheral countries will still be dampened by consolidation but the overall trend will nonetheless be upward." CARSTEN BRZESKI, ECONOMIST AT ING "The GDP figures are in line with expectations. It is normalisation, not a slowdown, after the strong second quarter. "The euro zone recovery is alive. "What is striking is that the divergence story continues. "The core euro zone countries are powering ahead, except for the Netherlands, and the others are lagging behind. "This divergence story will eventually lead to headaches." MARKET REACTION * For any foreign market reaction click on. * For more details of currency market moves see. * For any bond market reaction, click on LINKS For further details, Reuters 3000 Xtra users can click on: http://europa.eu.int/comm/eurostat/ or a one-page snapshot of real-time G7, euro zone and Swiss economic data releases, click on Keywords: EUROZONE GROWTH/ (marcin.grajewski@thomsonreuters.com; +322 2876830; Reuters Messaging: marcin.grajewski.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved.

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