Eurozone economy seen to contract as ECB, borrowing costs soar

The eurozone economy is likely to contract in July, with trade surveys increasing the likelihood that it will slip into recession as announced by the European Central Bank its first rate hike in more than a decade.

Released on Friday, trade surveys recorded clear signs of a slowdown in the global economy as rising prices and higher interest rates dampen consumer demand. Weak new orders also point to further cooling in the months ahead.