The European Commission cut its forecast for third quarter GDP growth in the euro zone to 0.3 to 0.6 per cent.
That forecast was down 0.3 percentage points from the earlier forecast of a 0.6-0.9 per cent rise.
The commission said it has revised down its estimate because of the deterioration of several marcroeconomic indicators including the ISM index and confidence in the retail and construction sectors.
It noted, however, that monetary conditions, by contrast, are "supportive".
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The commission said it expects GDP growth in the fourth quarter to again be between 0.3 and 0.6 per cent.