Euro-area momentum slowed in the second quarter, the latest piece of bad economic news for the European Central Bank.

Gross domestic product rose 0.2% from the previous quarter - less than the 0.3% initially reported by the bloc’s statistics agency. While trade and government spending supported growth, investment continued to be a drag, Eurostat said.

Private consumption - seen as a key pillar of the eurozone’s recovery - failed to take off in the period even as households benefit from slower inflation, rising incomes and a resilient labour market.

Employment grew again in the quarter, though the pace slowed to 0.2% from 0.3%, Eurostat said.

The data come less than a week before the ECB is forecast to lower interest rates again after an initial reduction in June. Sluggish economic momentum has emerged as a growing concern, with some officials warning that policy shouldn’t restrain the region for too long.

A key source of weakness is Germany, the bloc’s biggest economy, where output shrank in the second quarter amid a prolonged weakness in the important manufacturing sector.

Industry also started the third quarter on a weak footing, according to data on Friday that showed production fell more than forecast in July, a trend also witnessed in France.

  - Bloomberg