Eurozone grew 0.4% in Q2, double what was expected

WHAT HAPPENED

The eurozone economy grew 0.4% between April and June, double what was expected. Spain advanced 0.7%; Germany, France, and Italy, 0.2% each. Compared to last year, growth was 1.0%.

WHY IT MATTERS

The advance suggests more hiring and business spending, especially in consumption, construction, and credit. It also gives the European Central Bank room to take longer to lower rates, so mortgages and loans could remain expensive.

AND FOR YOUR PORTFOLIO

For a long-term portfolio, a stronger European economy may benefit companies linked to consumption and business spending. However, high rates tend to weigh on real estate and highly indebted companies. At home, credit may continue to cost more.