Economic sentiment reaches four-month high in fragile Eurozone
Confidence across the Eurozone jumped in May as strong consumer spending and a financial services sector on the mend helped repair a fragile feel-good factor across the single currency bloc.
The official European monitor of confidence – the Economic Sentiment Indicator (ESI) – came in at 104.7 for the Eurozone on an index where 100 marks the long-term average. That was up from 104 in April and takes the ESI to a four-month high.
It is down, however, on the scores of 106 registered at the end of last year.
"The increase in Eurozone sentiment resulted from market improvements in confidence among consumers and managers in the retail trade and construction sectors," the European Commission said.
Howard Archer of IHS Global said the figures were a "clear boost for Eurozone growth hopes".
The Commission said it found consumers were significantly more optimistic about the next few months than they were in February, March and April, when volatility on the financial markets dominated the headlines.
Inflation expectations – one of the most closely-watched statistics by central bankers – also edged up for a second consecutive month in a development that will please the European Central Bank (ECB). Nevertheless, views on how fast prices will increase are still down on their historic averages.
Confidence in the UK also increased in May after hitting its lowest level since July 2013 last month. The ESI came in at 105.7, up from 104.4, though still down considerably on highs of 113 reached last summer.