Euro zone rebounds from recession as inflation steadies

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Euro zone rebounds from recession as inflation steadies
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Third teenager charged with second-degree murder | SaltWire #newsupdate #news #halifax #policeBRUSSELS - The euro zone economy rebounded in the first quarter from a mild recession as Germany returned to growth and expansion accelerated elsewhere, while inflation steadied to reinforce the case for the European Central Bank to cut interest rates.

Euro zone inflation steadied at 2.4% in April, data showed. However, a crucial indicator of underlying price pressures slowed, solidifying the case for the European Central Bank to cut interest rates at its meeting on June 6, just as the EU public starts voting in the European Parliament election. Figures from EU statistics agency Eurostat showed growth in all 10 countries from which it compiles data for a flash estimate for the bloc. Growth rates were at least equal to those of the fourth quarter.

Spain's economy grew by 0.7% quarter on quarter, beating analysts' forecasts for 0.4% growth, due to a boost in investment and private consumption. Investment growth had been weak in previous quarters despite the deployment of European recovery funds. Industry and construction expanded in the quarter.

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