The eurozone economy showed modest improvement in the second quarter, offering a small sign of resilience after a period of weak growth and persistent inflation pressure. The data suggest the region is inching forward, though the recovery remains fragile and uneven across member states.

At the same time, the European Central Bank chose to leave interest rates unchanged, signaling that policymakers are still focused on inflation risks. The decision reflects a cautious approach as the bank balances slowing price growth against the need to support a recovery that is not yet fully secure.

Economists say the latest figures do not point to a strong rebound, but they do indicate that the bloc may be stabilizing after months of uncertainty. Business activity and consumer demand remain key areas to watch as the ECB assesses whether conditions are firming enough to justify a shift in policy later this year.