Euro Zone Growth Slows to 0.4% as France’s Economy Contracts

The euro zone economy expanded 0.4% in the third quarter, easing from 0.6% in the prior three months. The result was stronger than the 0.2% economists had forecast, while France’s economy unexpectedly contracted.

French output fell 0.1% as the country faced nationwide unrest and rising bond yields. Investors were focused on France’s high deficit.

The quarterly growth figure matches an earlier survey-based estimate for the euro zone, which also pointed to expanding services activity in Germany and France.