Europe’s economy expands less than expected

EUROPE’S economy expanded less than economists forecast in the fourth quarter as cold weather curbed German output and French growth unexpectedly stalled.

Gross domestic product in the euro region rose 0.3% from the previous three months, when it increased at the same rate, the European Union’s statistics office in Luxembourg said. Economists had forecast the economy to expand 0.4%, the median of 37 estimates in a Bloomberg News survey showed. Exports fell 0.4% in December from the previous month, a separate report showed.

Companies have relied on faster-growing markets to boost sales as governments from Spain to Greece toughened budget cuts, undermining consumer demand. Bayerische Motoren Werke, the world’s largest luxury-car maker, this month forecast a “significant” sales increase in the first half and German investor confidence rose for a fourth month in February, suggesting the recovery is gathering strength.