Europe to Succumb to Slowdown Driven by Tariffs, French Turmoil, Reports Show

Euro zone economic growth continues to hold up as Germany's budget largesse props up sentiment and offsets turmoil in France, but more weakness may be ahead as U.S. tariffs start to exert their full effect, key data showed on Tuesday.

The euro zone has been expanding quicker than economists had expected this year, sparking debate over whether the bloc is simply more resilient than thought and how much damage French political turmoil will do across the 20 nations.

Seemingly adding to the resilience case, the HCOB flash composite PMI edged up to 51.2 in September from 51.0 in August for its the ninth consecutive month of growth..

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