Official figures show that economic growth in the euro zone slowed to 0.3% in the second quarter of 2007, giving an annual growth rate of 2.5%. The slowdown was due to weaker business investment and construction activity.
The figures from the EU's Eurostat agency compared with an annual rate of 3.2% in the first three months of 2007, when the economy grew 0.7%.
The data, which were in line with earlier estimates, showed businesses reining in their investments and construction activity dropping sharply even before fears of a credit crunch emerged over the summer.
Business investment in the euro zone contracted 0.2% after expanding by 2% in the first quarter. Activity in the construction sector also fell sharply, contracting 1.6% after growing 1.9% in Q1.
