Eurozone Economic Confidence Rises For Second Consecutive Month

Brussels (Alliance News) – Economic confidence in the eurozone improved for a second-consecutive month in February despite the jitters surrounding Greece’s bailout, data released Thursday showed.

The European Commission’s closely watched Economic Sentiment Indicator rose to 102.1, up 0.7 points from January. The figure was broadly in line with analysts’ expectations.

The pick-up was “fuelled mainly by more optimistic consumers,” the commission said.

“Consumer confidence brightened markedly thanks to consumers’ more positive assessment of the future general economic situation, future unemployment and, to a lesser extent, their financial situation,” the EU’s executive added.

Leading the way were sentiment upticks in three of the eurozone’s largest economies – Italy, France and Spain – but confidence fell in economic powerhouse Germany.

The 19-country eurozone has been struggling with lackluster growth, high unemployment, low inflation and fresh bailout tensions with Greece’s new government.

But EU institutions and the European Central Bank have recently unveiled high-profile measures meant to spur growth, while the bloc has also been benefiting from more affordable oil prices and a lower exchange rate for its euro currency.

“In all, the survey suggests that eurozone economic activity has not yet been hit too hard by the Greek crisis,” Jennifer McKeown of the Capital Economics research group said. “But there are few signs that the recovery is accelerating.”

ING Bank analyst Teunis Brosens, however, argued that there is “scope for further consumption-led growth” this year, given the low oil prices and the declining threat of Greece existing the eurozone.

He noted that the arrival of the new leftist government in Greece helped pushed national consumer confidence from -49.3 in January up to -30.6, its highest level in more than five years.

“The positive sentiment is not shared in the country’s business sector, however,” Brosens said.

In the wider, 28-country EU, the ESI increased in February by 0.4 points to 105.1.

Another eurozone index released by the commission Thursday was less upbeat, however. The Business Climate Indicator slipped 0.05 points to 0.07.

Category: Daily Witness, National