Investing.com - Italy’s economy contracted more-than-expected in the first three months of 2012, shrinking for the third consecutive quarter and deepening a recession, official preliminary data showed on Tuesday.
In a report, ISTAT, Italy’s statistical office said the country’s gross domestic product contracted by a seasonally adjusted 0.8% in the first quarter of 2012, disappointing expectations for a 0.6% contraction.
Italy’s economy contracted by an unrevised 0.7% in the preceding quarter. A technical recession is defined as two straight quarters of contraction.
Annualized GDP shrank at a rate of 1.3%, worse than expectations for a 1.1% decline, after contracting at a rate of 0.4% in the fourth quarter.
Following the release of the data, the euro held on to gains against the U.S. dollar, with EUR/USD rising 0.32% to trade at 1.2863.
Meanwhile, European stock markets were broadly higher. Italy’s FTSE MIB 40 climbed 1%, the EURO STOXX 50 advanced 0.75%, France’s CAC 40 jumped 0.95%, Germany's DAX added 0.5%, while London’s FTSE 100 gained 0.5%.
In a report, ISTAT, Italy’s statistical office said the country’s gross domestic product contracted by a seasonally adjusted 0.8% in the first quarter of 2012, disappointing expectations for a 0.6% contraction.
Italy’s economy contracted by an unrevised 0.7% in the preceding quarter. A technical recession is defined as two straight quarters of contraction.
Annualized GDP shrank at a rate of 1.3%, worse than expectations for a 1.1% decline, after contracting at a rate of 0.4% in the fourth quarter.
Following the release of the data, the euro held on to gains against the U.S. dollar, with EUR/USD rising 0.32% to trade at 1.2863.
Meanwhile, European stock markets were broadly higher. Italy’s FTSE MIB 40 climbed 1%, the EURO STOXX 50 advanced 0.75%, France’s CAC 40 jumped 0.95%, Germany's DAX added 0.5%, while London’s FTSE 100 gained 0.5%.