France, Spain offset German weakness
Consumer confidence remains negative
Inflation data to shed light on ECB rate path

July 30 Reuters The euro zone39;s economy grew slightly more than expected in the three months to June, data showed on Tuesday, but a mixed underlying picture and a string of pessimistic surveys cloud the outlook for the rest of the year.

The figures portray a bloc struggling to regain ground in global trade but continuing to enjoy a domestic rebound fuelled by higher real incomes and public spending.

Output in the 20 countries that share the euro increased by 0.3 in the second quarter of the year, Eurostat data showed, keeping up the pace from the previous quarter and just ahead of economists39; expectations.

Among large economies, France and Spain did better than expected, Italy held its ground, while German output unexpectedly contracted, strengthening fears about a lengthy crisis in a country that was for a decade Europe39;s powerhouse.

Consumer confidence also remained negative in July, adding to a number of weak surveys in recent days.

The euro zone economy is quite like the water quality of the Seine some days it may look okay but overall its poor enough to continuously worry about it, ING economist Bert Colijn said, referring to the river in Paris where some Olympic events have been disrupted due to pollution levels.

The 0.3 quarterly increase in French GDP was a case in point.

While growth was a touch better than expected, this was…