Rising production expectations in industry boosted economic sentiment in the euro zone by more than expected in November, data showed today, while consumer inflation expectations continued to recover from August lows.
A monthly European Commission survey showed economic sentiment in the 16 countries using the euro rose to 88.8 points from October's 86.1, marking an eighth straight month of improvement and signalling further recovery in coming months.
"Sentiment in industry ... was the main contributor to the overall improvement," the Commission said.
"While most managers reported small improvements in their order books, it was production expectations which had the largest positive effect overall," it added in a statement.
Sentiment in euro zone industry rose two points to -19 in November, the mood in the services sector jumped to -4 from -7, while retail rose to -11 from -15.
Consumers also became more optimistic, with the index rising to -17 from -18 and in construction sentiment rose to -26 from -29.
Consumer inflation expectations rose from record lows of -16 in August and -14 in September and October to -11 in November, but remained well below the long-term average of a positive 21.
Selling-price expectations among companies eased to -9 from -8.
The European Central Bank, which aims to keep annual inflation just below 2 per cent over the medium term, monitors inflation expectations to determine whether they are anchored around its target.
Reuters