Morale in euro zone's economy improves


Morale in the euro zone’s economy improved for the first time in almost a year in November, but signs of stagnant investment plans for next year in industry dampened hope of a quick recovery from recession.

Economic sentiment in the euro zone rose 1.4 points to 85.7, ending an eight-month run of falls, the European Commission’s monthly business and consumer survey showed yesterday, beating forecasts.

However, the commission’s survey of industry found expectations of a 1 per cent fall in real investment in 2013 compared to this year, casting doubt on optimism among European policymakers that growth will return next year.

The euro zone fell into a recession in July-September, its second since the global financial crisis in 2009, as French resilience could not make up for a slump across Europe and the three-year debt crisis slowed Germany to a crawl.

The commission sees 0.1 per cent growth in the euro zone economy next year, but the OECD and many international economists see the recession continuing in 2013. – (Reuters)