Economic sentiment in the euro zone jumped to its highest in nearly 18 months as business morale set peaks last seen in May 2001 and consumer optimism hit its highest this year, the European Commission said this morning.
The latest sign of the euro zone economy's improving health coincided with data showing the bloc's inflation rate climbed to 2.2 per cent in November, above the European Central Bank's 2 per cent tolerance limit that it had brushed in October.
Euro zone economic sentiment rose to 95.9 in November, its best showing since June 2002, from 95.5 in October.
The increase, which matched economists' expectations and echoed recent national reports, came as the index of industrial confidence climbed to minus 7 - a level not seen since May 2001 - from minus 8 and consumer confidence rose to minus 16, its highest this year, from minus 17 in October.
The Commission's separate euro zone business climate indicator also rose to a 2-1/2-year high in November as managers turned more upbeat about production trends, export orders books and stocks, the European Commission said today.
The indicator rose to 0.02, the first time it has been in positive territory since May 2001, from a revised minus 0.21 in October, its latest increase extending gains seen since August.