Euro zone economy rebounds with strong growth and falling inflation

The euro area economy grew by 0.3% in the second quarter, signaling a recovery after a decline in the previous quarter. Inflation in the euro area fell to 5.3% in July, with core inflation remaining unchanged at 5.5%. France's GDP exceeded expectations due to strong exports, while domestic demand indicators performed poorly. Business activity contracted at the fastest pace in eight months in July, and demand for business loans hit a record low. The European Central Bank raised interest rates but may pause further hikes in September. Inflation remains above the ECB's target of 2%.