Lagarde Sees Euro-Area Growth Stuck at Modest Pace amid Tariff Drag

European Central Bank President Christine Lagarde said recent business surveys point to only a modest expansion in the euro-area economy, suggesting growth momentum remains restrained. Lagarde noted that a strong labour market, rising real incomes and generally healthy private-sector balance sheets continue to underpin household spending. However, she warned that higher tariffs and the stronger euro are weighing on corporate sentiment and are likely to make capital investment more difficult.