Europe’s economy shows modest growth after months of stagnation

The European economy has grown slightly over the most recent quarter (Michael Probst/AP/PA)

The European economy grew modestly in the most recent quarter, breaking out of months of stagnation or contraction as higher interest rates designed to fight inflation make it more expensive for households and businesses to borrow, invest and spend.

The 20 countries that use the euro currency and their 346 million people saw 0.3% growth in the April-to-June period, the EU statistics agency Eurostat reported on Monday.