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mpc: 9 Growth in the euro area in 2005 Q1, at 0.5%, was stronger than had been expected at the time of the May Inflation Report, and was close to trend. But because of difficulties in adjusting for the number of working days in Germany around the turn of the year, the underlying picture there had been somewhat weaker. Adjusting for this, euro-area growth had probably been broadly similar in each of the past three quarters, and below trend. Euro-area domestic demand was recorded as being flat in 2005 Q1, meaning that the increase in GDP had been accounted for by net trade. That in turn reflected weaker imports rather than stronger export demand. There had also been some expectation of a recovery in investment through this year, but that had so far failed to materialise; investment had fallen 0.7% in Q1. Within aggregate euro-area GDP, there were signs of weakening in some countries such as France and GDP had now fallen for two successive quarters in Italy.