Update: Eurozone contracts 0.2% in Q2 as periphery weighs

Better-than-expected German and French GDP figures have failed to offset peripheral weakness as the eurozone contracted by 0.2% in the second quarter.

The fall follows a 0% growth rate in the first quarter and a decline of 0.3% in Q4 2011. The contraction, in line with economists' forecasts, came in the context of better-than-expected growth figures for the likes of Germany and France but disappointing data from nations on the eurozone periphery. Portuguese Q2 2012 growth contracted by 1.2%, against expectations of a 0.7% fall, to record its seventh successive quarterly drop. The Greek economy, meanwhile, contracted by a further 6.2%. However, German growth for the second quarter of 2012 showed a 0.3% gain, beating expectations o...