Euro-Zone Q4 GDP was revised down to -1.6% q/q and -1.5% y/y, from -1.5% q/q and -1.3% y/y reported previously. The breakdown showed that investment was revised down to -4.0% q/q from -3.7% q/q, household consumption and exports also contracted with a 0.4% q/q rise in government spending not sufficient to prevent a marked decline in overall GDP at the end of last year. Data are too backward looking to change the overall assessment, but the downward revision means the negative carry over effect for this year will be larger than previously expected, which will pull down growth even more. Data will back arguments for another rate cut and further measures to ease credit conditions at the next council meeting.
