EU cuts economic forecasts over trade uncertainty

The European Union's executive commission has trimmed its forecast for eurozone economic growth this year and next as uncertainty over trade conflicts and weakness in the auto industry hold back output.

The commission lowered its outlook for growth this year in the 19 countries that use the euro to 1.2 percent from 1.3 percent in its previous forecast in February. The estimate for next year was trimmed to 1.5 percent from 1.6 percent.

The commission said that domestic demand alone was keeping Europe's economic upswing going in its seventh year, thanks to a strong job market, muted inflation and low borrowing costs.

Europe's economy depends heavily on trade and has felt the effects from slowing global commerce and the trade dispute between the US and China. Auto companies are struggling with tougher emissions regulations in the US and China, and with trade...