European economy slows amid trade fears

Published: Jul. 31, 2018 at 4:53 AM CDT
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Official statistics show that Europe's economic upswing slowed further in the second quarter amid jitters over a possible global trade war.

Growth in the 19 countries that use the euro currency eased to a quarterly rate of 0.3 percent, weaker than markets had expected and down from from 0.4 percent in the first quarter. Fear that new tariffs will slow global commerce has been weighing on the outlook in the Europe, where the economy is heavily dependent on trade.

Though the economy has slowed, it continues to grow, with output up 2.1 percent from the second quarter a year earlier.

Figures from the European Union's statistics agency Eurostat showed Tuesday that unemployment was unchanged in June at 8.3 percent and inflation rose in July to 2.1 percent from 2.0 percent.