By Joshua Kirby
The eurozone economy grew marginally over the three months through June, figures confirmed Friday, leaving the European Central Bank unlikely to cut its key interest rate next week.
Across the 20 nations that share the euro, gross domestic product was 0.1% higher than the first quarter, in line with previous estimates. That marks a sharp slowdown from the 0.6% expansion recorded over the first three months of the year.
The slowdown was driven by the currency area’s largest member, Germany. Output in the export-oriented economy declined by 0.3% as fresh U.S. tariffs hit factory output and confidence among business and households.
Manufacturing orders slumped for a third month straight in July, separate figures from the German statistical authority showed Friday, highlighting the ailing demand clouding the country’s factories.
In the eurozone as a whole, falling exports and declining investment acted as a brake on GDP growth over the quarter. But household spending, a key element in ECB decision-making, kept rising, likely adding to the central bank’s caution as it considers whether to resume cutting interest rates.
Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby
(END) Dow Jones Newswires
09-05-25 0528ET