Europe’s economy barely grows as inflation pinches consumers

By DAVID McHUGH
AP Business Writer

FRANKFURT, Germany (AP) — The European economy has scraped out meager growth in the first three months of the year. That’s barely momentum as stubborn inflation is hiking the price of groceries and eroding people’s willingness to spend paychecks that are failing to keep pace. Friday’s less-than-stellar increase of 0.1% from the previous quarter follows disappointing growth estimates from the U.S., which kept alive fears of a looming recession in the world’s largest economy. The 20 countries that use the euro currency picked up speed from January through March after zero growth in the last three months of 2022. Industrial activity has picked up, but inflation is holding back consumer spending.