Eurozone growth edges up as ECB weighs next rate move

The eurozone economy showed a modest improvement in the second quarter, according to new data that suggest the bloc may be gaining some traction after a slow start to the year. The latest figures point to slightly stronger growth, though the recovery remains uneven across member states and sectors.

Markets and policymakers are now focused on the European Central Bank, which is set to announce its next interest-rate decision soon. Investors are watching for signals on whether the ECB believes inflation is easing enough to justify a more cautious stance, or whether it will keep policy tight to avoid reigniting price pressure.

Economists say the pace of recovery is still fragile, with consumers facing higher borrowing costs and businesses navigating weak demand in parts of the region. Even so, the latest numbers offer a small sign that the eurozone may be moving past the weakest phase of the slowdown.

The ECB’s decision is likely to shape expectations for the rest of the year, especially if officials use their guidance to signal how long restrictive policy may remain in place. For now, the focus is on whether the recent uptick in growth marks a turning point or only a brief rebound.