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Gross Domestic Product in both the European Union and the Eurozone increased 1 percent during the second quarter of 2010, compared with the previous quarter, according to first estimates released by Eurostat.
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The figures show the EU and the Euro Zone have rebounded strongly as compared to the first quarter of the year. According to the statistical office of the European Union, growth rates in the first quarter of 2010 were 0.3 percent in both zones.
Compared with the second quarter of 2009, seasonally adjusted GDP increased by 1.9 percent in both the euro area and the EU27, Eurostat data showed.
GDP growth in the EU and the euro common area was the fastest in four years, outstripping rivals United States and Japan.
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In comparison, the United States GDP increased 0.4 percent during the second quarter of 2010, after 0.9 percent rise in the first quarter of 2010. In Japan, GDP rose a nominal 0.1 percent in the second quarter of 2010, after 1.1 percent growth in the previous quarter.
Among the major economies in the EU, Germany posted the strongest growth, at 2.2 percent while French economy grew 0.6 percent and UK GDP inched up by 1.2 percent. Italy stagnated at 0.4 percent growth. Growth rate was highest in Finland, at 3.1 percent.
Results from a survey published on Monday showed that consumer confidence in the Euro Zone was more upbeat than previously. The new GDP data confirms the belief that stronger consumer spending was the driving force behind more positive GDP estimates in the region.
The survey findings showed the European Commission's overall Economic Sentiment Indicator, or ESI, rose to 101.8 from 101.1, in line with forecasts and its third straight monthly increase. The fact that ESI hit its highest reading in as many as 29 months suggested that the euro-zone economy was poised to maintain grow in the near future.
According to Eurostat, consumer spending in the region was up 0.5 percent over the first quarter, the largest gain since the 0.7 percent increase recorded in the third quarter of 2007.
It remains to be seen if the strength domestic demand will persuade the European Central Bank to introduce any changes in its monetary policy.
ECB is not expected to raise its key interest rates when it meets later Thursday. Rates have been held at record low of 1 percent for 16 months in a row.
However, markets are looking forward to the remarks by ECB president Jean-Claude Trichet following the rate decision.
Analysts expect ECB to announce an extension of its three-month liquidity operations which have kept banks in the bloc armed with sufficient supplies of liquidity. The euro inched up on Thursday after positive growth figures were released. By 0935 GMT, the European common currency was up 0.1 percent at $1.2826.
Markets are also waiting to see if Trichet would make any somber comments about the economic outlook despite the robust second quarter growth figures.
