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| Europe’s Economy Falters, Diverging From Strong Growth in U.S. | Europe’s Economy Falters, Diverging From Strong Growth in U.S. |
| (3 days later) | |
| As the United States economy powers ahead, Europe is moving along a very different path: a drawn-out economic slowdown burdened by a double dose of high interest rates and the lingering impact of Russia’s war in Ukraine. | As the United States economy powers ahead, Europe is moving along a very different path: a drawn-out economic slowdown burdened by a double dose of high interest rates and the lingering impact of Russia’s war in Ukraine. |
| Growth in the eurozone contracted 0.1 percent this summer, more than expected, as record-high interest rates intended to fight inflation blunted economic activity in Germany and France, the region’s two biggest economies, Europe’s statistics agency reported Tuesday. | Growth in the eurozone contracted 0.1 percent this summer, more than expected, as record-high interest rates intended to fight inflation blunted economic activity in Germany and France, the region’s two biggest economies, Europe’s statistics agency reported Tuesday. |
| The anemic pace is in sharp contrast to the United States, where the economy has surged despite a jump in interest rates by the Federal Reserve to tame inflation. Gross domestic product expanded 1.2 percent in the third quarter from the previous quarter — a 4.9 percent annual rate — powered by prodigious consumer spending and slowing inflation, which lifted purchasing power. | The anemic pace is in sharp contrast to the United States, where the economy has surged despite a jump in interest rates by the Federal Reserve to tame inflation. Gross domestic product expanded 1.2 percent in the third quarter from the previous quarter — a 4.9 percent annual rate — powered by prodigious consumer spending and slowing inflation, which lifted purchasing power. |
| The downturn reflected the challenges facing policymakers at the European Central Bank, who last week paused their campaign of interest rate increases amid signs that the region’s economy has weakened. Data showed the eurozone’s inflation rate in October eased to 2.9 percent, another indication of the impact of the central bank’s higher interest rates. | The downturn reflected the challenges facing policymakers at the European Central Bank, who last week paused their campaign of interest rate increases amid signs that the region’s economy has weakened. Data showed the eurozone’s inflation rate in October eased to 2.9 percent, another indication of the impact of the central bank’s higher interest rates. |
| Economic output in the 20 nations that use the euro currency declined 0.1 percent from July to September, reversing a mild growth gain in the second quarter and extending nearly a year of tepid economic activity. Compared with the same period last year, economic growth in the quarter was up just 0.1 percent. | |
| The E.C.B. has raised interest rates almost in lock step with the Fed to combat skyrocketing energy and food prices stemming from Russia’s war in Ukraine. Along the way, Christine Lagarde, the central bank’s president, has repeatedly sought to tread a fine line between slowing the economy enough to tame price rises — which had caused consumers to trim spending and saddled many businesses with untenable costs — and not tipping the eurozone into a recession. |