German GDP grows as Italy’s economy stagnates

German growth slowed less than predicted in the second quarter while Italian output unexpectedly stagnated, signalling diverging fortunes for two of the region’s biggest economies as they brace for any fallout from Britain’s decision to leave the EU.

Meanwhile, separate eurozone-wide figures showed the bloc’s economy grew 0.3% in the quarter, or 1.6% annual pace, and showed the eurozone was already slowing ahead of the UK’s shock June 23 vote.

The official data showed that a burst of activity at the start of the year was fleeting and more stimulus may still be required.