Euro zone economic sentiment jumped much more than expected in April and inflation expectations surged, data showed today, pointing to strengthening economic activity.
The European Commission's economic sentiment indicator for the 16-country area rose to 100.6 points from March's upwardly revised 97.9. Sentiment in industry improved to -7 from -10, in services to 5 from 1, among consumers to -15 from -17 and in the retail sector to -1 from -6 points.
Economists polled by Reuters had on average expected a rise in economic sentiment to 99.4 points, having forecast a smaller improvement in industry and services.
Selling-price expectations among manufacturers in the euro zone jumped to 5 points, a long-term average, from -2 in March.
Among consumers, expectations on prices over the next 12 months rose to 8 points from 4 points.
The European Central Bank keenly watches inflation expectations because it wants consumer price growth of just below 2 per cent.
The Commission survey said capacity utilisation in the euro zone manufacturing industry increased to 75.5 per cent in the second quarter from 72.3 percent in the first, but it remained well below the long-term average of 81.2 per cent.
In the euro zone, economic sentiment eased only in Greece, Portugal and Slovakia, while it surged in Germany, France, Italy and Spain.
Reuters