EU quarterly growth slowed in the third quarter

EU gross domestic product rose by 0.5% in the third quarter compared with the previous quarter, while euro-area GDP increased by 0.4%. According to Eurostat’s flash estimate of 13 November, seasonally adjusted growth slowed in both areas.

This matters to Hungarian suppliers because a foreign customer can reduce purchases of a particular product even in a growing economy. Aggregate GDP measures performance across the economy; assessing export prospects also requires orders in the destination country and industry. Hungary’s September industrial figures provide the domestic starting point.

The quarterly rate compares output with the preceding three months. Businesses using an annual comparison in their plans should keep the two indicators on separate lines: they answer different questions. Seasonal adjustment seeks to remove the effects of regularly recurring calendar patterns.

The current estimate cannot establish a Hungarian company’s next order book. Domestic inflation offers a separate reference point for assessing costs. The next material development will be the release of more detailed national accounts, which can show how much consumption, investment or foreign trade contributed to expansion.