Europe’s economy shows modest growth after months of stagnation as rate hikes weigh on businesses

By DAVID McHUGH
AP Business Writer

FRANKFURT, Germany (AP) — Europe’s economy is growing again — but not by much. Growth came in at 0.3% in the April-to-June quarter, following zero expansion in the three months immediately before. Stronger performance in Spain and France helped. But Germany, the largest of the 20 economies that use the euro, is holding things back with zero growth. High inflation is still sapping consumer spending power despite rebounding travel. Another factor is the series of interest rate hikes from the European Central Bank, which are making it harder to borrow to spend or invest. Amid inflation and higher rates, prospects for the rest of the year are muted.