European economic expansion slows amid trade fears
FRANKFURT — Europe’s economic upswing slowed further in the second quarter amid concerns over global trade disputes that have seen the world’s major powers impose new tariffs on each other.
Official figures on Tuesday showed growth in the 19 countries that use the euro currency eased to a quarterly rate of 0.3 per cent, weaker than markets had expected and down from 0.4 per cent in the first quarter. Fear that new tariffs will slow global commerce has been weighing on the outlook in the Europe, which is heavily dependent on trade.
Surveys of business confidence have recently indicated that business leaders are concerned about the impact of new import taxes imposed by U.S. President Donald Trump on global steel and aluminum imports and on a range of Chinese goods. The Chinese retaliated against U.S. products including autos and soybeans. So far, the trade disputes seem to be affecting business confidence but that has not yet fed through to strongly dampen actual economic activity.
Despite the recent slowdown, the economy is coming off a good year, and output was up a robust 2.1 per cent from the second quarter a year earlier.