Domestic demand fading as main driver of growth

Domestic demand appears to have been the main driver of euro-zone GDP growth in Q3 but this looks set to fade as employment growth slows. Indeed, the first surveys for November next week are likely to add to evidence that the economy will slow this quarter. Meanwhile, there has been some progress towards the formation of a government in Spain but we expect that the proposed administration will struggle to pass a budget or any meaningful reforms.