The eurozone economy continued to grow during the summer, but the latest figures reveal increasingly uneven conditions across its largest members.

Gross domestic product rose by 0.4% in the third quarter of 2026 compared with the previous three months. That was slower than the 0.6% increase recorded in the second quarter, yet still stronger than economists had expected. The broader picture is one of resilience mixed with growing divergence.

Growth Beat Expectations

The 21-country euro area expanded by 0.4% between July and September. Across the European Union as a whole, GDP increased by 0.5%. Compared with the same period a year earlier, eurozone output was 1.3% higher, while the EU economy grew by 1.5%.

The figures suggest that activity has held up better than feared despite higher energy costs, expensive borrowing and weaker confidence in several major economies. However, growth remains far from uniform across the bloc.

France Unexpectedly Contracted

France was one of the weakest large economies during the quarter. GDP fell by 0.1% after showing no growth in the previous three months. Household consumption actually strengthened, rising by 0.4%, while government consumption increased by 0.3%. That was not enough to offset weakness elsewhere. Business investment fell by 0.6%, marking a second consecutive quarterly decline. The biggest drag came from foreign trade.

Exports dropped by 1.7% after rising strongly in the previous quarter, while imports were almost unchanged. As a result, external trade reduced French GDP growth by 0.6 percentage points.

Investment Remains A Weak Spot

France’s investment decline is particularly important because it can affect future growth as well as current activity. Higher borrowing costs make it more expensive for businesses to finance new factories, equipment and construction projects.

Political uncertainty and concerns about public finances can also cause companies to postpone major spending decisions. Inventories helped offset some of the weakness, contributing positively to GDP, but stockbuilding is often volatile and does not necessarily signal stronger underlying demand.

Spain Continued To Outperform

Elsewhere in the eurozone, Spain maintained stronger momentum. Its economy grew by 0.6% during the quarter, supported by domestic demand and a relatively resilient labor market. Germany expanded by 0.2%, while Italy recorded no quarterly growth. Ireland posted growth of 5.5%, although Irish GDP figures are frequently distorted by the activities of large multinational companies and can fluctuate sharply from quarter to quarter.

These differences show why a single eurozone growth number can hide very different national trends.

The ECB Faces A Difficult Balance

Slower growth complicates the European Central Bank’s job. Inflation remains above its 2% target, while energy prices have recently added further pressure. Higher interest rates can help contain inflation, but they can also weaken borrowing, investment and consumer spending. That creates a difficult trade-off for policymakers when some countries are still expanding while others are already stagnating or contracting.

France Is The Main Concern

The French slowdown stands out because it comes alongside rising borrowing costs and pressure to reduce the country’s budget deficit. Weak growth makes that task harder. Lower economic activity can reduce tax revenues just as the government is trying to control spending and stabilize public debt.

For the eurozone overall, the third-quarter figures are not a recession signal. Growth remains positive and stronger than expected.

But the numbers also show that resilience is becoming increasingly uneven. The euro area is still moving forward, while some of its biggest economies are struggling to keep pace.