0.4% of Italian GDP in Q2

The Italian economy grew by 0.4% in the second quarter, a figure in line with analysts' forecasts, which confirms that the recovery is on track even if domestic demand remains weak.

On an annual basis, the gross domestic product (GDP) grew 1.1% in Italy, again as expected analysts polled by Reuters.

In the first quarter, the Italian GDP had revealed an increase of 0.4% sequentially and 0.5% annual rate.

The sectors of industry and services showed a quarterly growth, while activity in the agricultural sector has shrunk, the agency said National Statistics, Istat.

Italy is the first major euro zone countries to publish figures of GDP for the second quarter.

"They are consistent with expectations and, in general, these are good figures for the Italian economy," said Torge Middendorf, an economist at West LB.

"If we look at the latest statistics on production of consumer goods, retail sales and new car registrations, all of which were small, this paints a picture of the consumer is not really encouraging," shade there.

"The growth has mainly supported by a strong increase in inventories and investment, especially in equipment."

• 0.4% growth in 2011 for Italy
• The credit was sent back to U.S.
• Japan's GDP fell less than expected in Q2
• Stability of producer prices in August
• The U.S. economy created more jobs than expected