STORY: The euro zone grew more than expected over the first quarter. buoyed by a rebound in Germany and strong expansion in Spain.
Overall, that saw the bloc's economy expand 0.5% on the year, well ahead of expectations.
Rising exports and a recovering construction sector saw economic powerhouse Germany return to growth and dodge a recession.
Meanwhile, euro zone inflation held steady as expected in April, but a key indicator on underlying price pressures slowed.
It adds to an already strong case for the European Central Bank to cut interest rates in June.
The ECB has all but promised a rate cut on June 6, provided there are no negative surprises in wage or price developments.
Tuesday's data stayed consistent with the path the bank saw in its last round of projections in March.
Inflation in the 20 countries sharing the euro currency was 2.4% in April - the same as in March and meeting analyst expectations.
Core inflation, which cuts out more volatile prices and is a key measure watched by policymakers, also slowed slightly.
And services inflation eased to 3.7%, although rapid wage growth in the sector remains a concern.
Inflation has fallen quicker in the past year than the ECB had expected, and potential rate cuts have dominated the discussion for months now.
The ECB raised interest rates at the fastest pace on record in 2022 and 2023 to fight runaway prices.
It has held the deposit rate steady at 4% since September, as policymakers argue it has done enough to restrict demand and extinguish price pressures.
Some appear to be walking back earlier comments the June cut should be followed by a series of moves, however.
They believe inflation was well on its way to the 2% target by some time in 2025.
Higher caution is fueled by rising energy costs and mounting geopolitical tensions.
But unexpectedly high inflation readings in the U.S. may be a bigger concern since that could delay rate cuts from the U.S. Federal Reserve.
