Economic sentiment in the euro zone rose in December for the first time in four months, according to a European Commission survey today, underlining the region's economic health despite faltering US growth.
Analysts said the data showed the euro zone was still on track for above-trend growth this year, although they were more divided on the outlook for European Central Bank interest rates.
The Commission said the sentiment index, which is based on a monthly survey of thousands of businesses and individuals, rose to 103.3 from 103.2 in November.
Consumer confidence rose in 10 of the then 11 euro zone countries and was steady in Portugal.
Industrial confidence also beat expectations, remaining unchanged in contrast to other recent survey data, such as the manufacturing purchasing managers'index (PMI), which fell slightly in December for the eighth month running.
"The PMI, the Ifo, etc. have been pointing to more of a slowdown than the Commission survey but even if the truth lies somewhere in the middle...we are still in for growth of between 2.5 and 3.0 percent," said Mr Jean-Francois Mercier of Schroder Salomon Smith Barney in London.
"It confirms that the ECB is likely to keep rates unchanged for now," Mr Mercier said.
He didn't see the ECB cutting rates soon unless the global growth picture worsened considerably.
Reuters