Recovery in Europe's economy remained patchy around the turn of the year, according to euro zone and national data released today.
Euro zone economic sentiment rose in January to its highest levels since mid-2001 - evidence of an economic upswing two days before the European Central Bank meets on interest rates.
But a drop in the January business climate indicator and flat consumer confidence added a note of caution, a monthly survey by the European Commission showed.
At the national level, France's official unemployment rate slid slightly to 9.5 per cent in December from 9.6 a month earlier. French consumer confidence rose in January.
But neighbouring Germany reported an unexpectedly large drop in retail sales which served as a reminder of its Achilles' heel - stagnant domestic demand. Retail sales fell 1.4 per cent in December while year-on-year levels tumbled 1.6 per cent in real terms.
German unemployment jumped in January, the headline figure passing five million for the first time since April.
Analysts said not too much should be read into one month's figures, but some wondered whether Europe's largest economy was starting to flag after a year of strong exports.