The government statistics bureau’s latest assessment shows a fall in domestic demand which offset export growth.

However compared with the second quarter last year, growth was revised up slightly to 0.8 percent from the original 0.7 percent estimate.

Investments, which have languished in recent years, and consumer spending, both made a zero contribution to quarterly growth.

Italy’s economy has been among the most sluggish in the eurozone for more than a decade.

Analysts expect growth to be below one percent this year and even weaker next year.

The stagnant quarterly growth rate marked a sharp slowdown from the 0.3 percent rate seen between January and March, and will disappoint the government.

Prime Minister Matteo Renzi said on Thursday he expected the flat reading would be revised up to show some modest growth, echoing previous comments from the economy ministry. (Euronews)