Economic sentiment in the 12-nation euro zone improved to its highest level in a year in October, but the inflation rate remained stuck above the European Central Bank's threshold for a third month in a row, data showed today.
The main driver of the improving sentiment was euro zone businesses with retailers clearly more upbeat and industry continuing to grow more optimistic, the European Commission said.
Consumer confidence, however, remained unchanged for the second month in a row in October as households turned more pessimistic about their financial situation over the next 12 months.
The EU's executive's index of economic morale rose to 95.6 from 95.4 in September, the highest in 12 months. While industrial confidence rose to minus eight from minus nine, consumer confidence was steady at minus 17.
The Commission's survey of the wider 15-member European Union showed overall economic sentiment rose to 95.9 from 95.6 in September.
A separate survey by the Commission on the business climate hit its highest in nearly 2-1/2 years in October as managers turned more upbeat about recent production trends and export order books.
The indicator rose to minus 0.18 from minus 0.42 in September, extending an upward trend seen since August and hitting its best levels since May 2001.