Euro zone Q2 annual growth estimate upgraded

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Import bills in the reviewed quarter stayed higher.

ING economist Carsten Brzeski says "though some kind of a slowdown from current growth rates looks nearly inevitable" many signs point to more growth ahead and there's "little reason to fear a sudden end to the current performance".

"All things considered, we remain optimistic about the eurozone economy, and forecast above-consensus growth of 2.2 percent this year and 2 percent in 2018", said Jack Allen, European economist at Capital Economics.

"The press release from the statistical office confirms our story that domestic demand was the main driver of growth in Q2 - mainly household and government spending - while net exports slowed", said Claus Vistesen at Pantheon Macroeconomics.

While that's below the 0.7% estimate in a Bloomberg survey of economists, the Federal Statistics Office revised first-quarter output up to 0.7%.

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Carsten Brzeski, analyst at ING Bank, said Germany's economic success just went "on and on and on" but he cautioned that exports could be dented by a stronger euro, weaker-than-expected United States growth and Brexit uncertainty.

Despite the June fall, industrial production was still a healthy 2.6 percent higher compared with a year earlier, though down on May's 3.9 percent annual rate. The Statistics Office will publish its detailed GDP growth data on August 25.

German chancellor Angela Merkel will lead the Christian Democrat party (CDU) into next month's elections have presided over 12 straight quarters of growth.

The French economy, the second largest in the eurozone, grew 0.5% in the second quarter, helped by stronger exports according to preliminary data. The Spanish economy keeps powering ahead, however, with a growth rate of 0.9 percent in the April-June quarter.

The figure was down from a 0.7 per cent pace in the first quarter and slightly weaker than market expectations of 0.7 per cent.

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