Economic sentiment in the euro zone index improved in December for the first time since the last quarter of 2000, the European Commission said today.
Consumer confidence was the main driving force for a pick-up that saw the economic sentiment indicator for the 12-nation euro zone rise to 98.8, a better reading than economists had expected, from 98.6 in November.
The index for the wider 15-nation region rose to 98.8 from 98.7. The breakdown showed the consumer confidence indicator rose by three points in the EU and two points in the euro zone.
"The developments recorded by the economic sentiment indicator in December 2001 could point to reversal of the negative path followed since the last quarter of 2000," the Commission said.
"Such positive developments are mainly attributable to the favourable evolution observed in the consumer confidence component, while, in comparision, the other three components of the economic sentiment indicator, industry, construction, and retail trade, remained broadly stable".
The euro zone consumer sentiment index was reported as -10; the industrial confidence index came in at -17.
Economists polled by Reutershad on average expected the overall economic sentiment index to come in at 98.6 and readings of -12.2 and -17.2 for the consumer and business sentiment components of the index, respectively.