Ray of light: Euro-zone GDP increased 0.4% in Q3

However, on a year-over-year basis, GDP is still 4.1% lower in the euro-zone, and 4.3% lower in the EU27. Eurostat's Q3 results published Friday are preliminary and subject to revision: final results will be published later this month when more data becomes available.

In Q3 the two economic giants of Europe, Germany and France, posted GDP growth rates of 0.7% and 0.3%, respectively. Growth rates of other nations were as follows: Spain, -0.3%; Italy, 0.6%; Greece: -0.3%; Austria, 0.9%; and Portugal, 0.9%

The economy of the United Kingdom, a member of the EU27 but not the euro-zone, contracted -0.4% in Q3.

Economic Analysis: Incremental progress on the European continent, a critical component in the global economy. Overall, a decent prelim Q3 GDP performance from Europe (subject to revision, of course), as a Bloomberg News survey had expected 0.5% GDP growth in the quarter. Further, the glass-half-full view would argue that the GDP report and the increase in Europe's industrial production are two tell-tale stats indicating a European economy on a growth-track. The Q3 GDP growth was not as strong as some would have expected, but given the damage the financial crisis has inflicted on commerce on both sides of the Atlantic, one has to crawl before one can walk. What would really help increase euro-zone GDP growth in the quarters ahead? An increase in domestic demand in Germany and France, led by consumer spending.