Eurozone Economy Seen Contracting as ECB Raises Borrowing Costs

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The eurozone economy has likely contracted in July, business surveys showed, raising the likelihood that it will slide into recession just as the European Central Bank announced

its first rate rise in more than a decade.

Released Friday, the business surveys recorded clearer signs of a slowdown in the global economy as rising prices and higher interest rates crimp consumer demand. Weakening new orders also point to a further cooling in the months ahead.