What's going on?

It turns out that, after much consternation, the eurozone economy might actually be recovering� according to the first estimate, the economy grew 0.6% in the first quarter (equivalent to about 2.4% annualized growth) � better than both the US and the UK.

What does this mean?

There�s been a lot of fear that the eurozone, which saw a brief jump in growth at the beginning of last year, was already seeing its recovery fizzle � but these new figures suggest otherwise. The best news seems to be that �investment� seems to be picking up. That doesn�t mean that more people are buying stocks or bonds � it means that businesses are spending more money investing in things like factories and equipment. That should, hopefully, drive future economic gains because it increases the capacity of the economy to produce more in the future.

Why should I care?

The bigger picture: Recent economic data suggests a change in the pecking order amongst big, western economies. On first quarter figures alone, the eurozone is growing the fastest, followed by the UK and tailed, at quite a substantial length, by the US. However, these initial estimates are highly prone to revision over time � so don�t take this news as total confirmation that things have changed. And, even if Europe is growing at the fastest pace of the bunch, it�s starting from a lower base (because its growth since the financial crisis has been so poor).

For you personally: Low inflation (rising prices) but an improving jobs market are good for the average person. Interestingly, deflation�actually occurred in the eurozone in April (a.k.a. prices fell). At the same time, the unemployment rate fell. So, on the whole, people�s incomes are rising but their costs aren�t going up (and are probably�falling somewhat). That makes it easier to spend money and is thus usually good for companies that sell things to people (especially �discretionary� things like restaurant meals and travel packages).