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Euro zone's Q2 growth faltered

Official figures show that economic growth in the euro zone slowed to a lower than expected 0.3% in the second quarter, compared with 0.7% in the previous three months. The annual rate also slowed from 3.1% to 2.5%.

Meanwhile, the European Commission has lowered its predictions for euro zone growth slightly in new estimates published this morning.

The body now expects 0.3-0.8% growth in the third quarter of 2007 and 0.2-0.8% in the final quarter.

Last month the Commission forecast 0.4-0.8% growth for  the third quarter and 0.3-0.8% for the fourth quarter.