The 17-country euro zone economy is back in recession.

EU statistics office Eurostat said the euro zone economy contracted by 0.1 per cent in the July to September period from the quarter before.

That follows on from the 0.2 per cent decline recorded in the second quarter and officially puts it in recession, commonly defined as two straight quarters of falling output.

The wider EU, which includes non-euro countries, avoided the same fate. It saw output rise 0.1 per cent during the quarter, largely on the back of an Olympics-related boost in Britain.

The slump was in line with market expectations and follows on from the 0.2 per cent decline recorded in the second quarter.

The euro zone has dodged recession during its three-year debt crisis, mainly thanks to the strength of its largest single economy, Germany.

But even that country is struggling now as demand falls off from the other members of the euro zone, mainly the southern economies of Greece, Spain, Italy and Portugal.

Germany's economy grew a muted 0.2 per cent in the third quarter, down from a 0.3 per cent increase in the previous quarter.

Five eurozone countries are in recession - Greece, Spain, Italy, Portugal and Cyprus, according to the figures.