GDP in Germany, France expands

Helped by stimulus spending, preliminary data showed that 2Q GDP in Germany, Europe's largest economy, and France, Europe's second largest economy, unexpectedly increased by 0.3% from the prior quarter, versus forecasts of a decline by about the same amount.

Unlike the US, where the quarterly changed is annualized, GDP in Europe is reported by the percentage changed versus the previous quarter.

As a result of the unexpected strength in France and Germany, eurozone GDP fell by just 0.1%, signaling the worst in Europe is over.

Germany is especially dependent on exports, and recent gains in manufacturing and growth in emerging markets are helping to offset headwinds from weak consumer spending and rising unemployment.