A sharp increase in the rate of business investment in the 17 countries that share the euro helped boost economic growth in the region during the first three months of the year, according to The Wall Street Journal. On Wednesday, the European Union published its revised estimate of first quarter growth in the eurozone that showed the region expanding at an unchanged 0.8% in the first quarter for a 2.5% year-over-year increase, which is a three-and-a-half-year high. The report detailed that business investment grew at the fastest rate in three quarters with a 2.1% quarterly increase.
The strong business investment accounted for half of the overall economy’s 0.8% increase, and Jens Sondergaard of Nomura International said the data suggests the recovery is becoming broader and more likely to be self-sustaining. Sondergaard expanded that the data suggests the recovery “is less dependent on net trade and inventories,” adding, “It shows the recovery has legs.” However, a recent fall in German industrial production is the latest in a string of indicators that are pointing to slower growth in the coming months.