Industry boosts eurozone economic sentiment

AP News
Posted: Nov 27, 2009 7:44 AM

Economic conditions in the 16 countries that use the euro improved further in November amid mounting optimism in the industrial sector, figures from the European Commission showed Friday.

In its monthly assessment of economic conditions, the Commission said its main economic sentiment indicator for the eurozone rose for the eighth month running to a 14-month high of 88.8 points, up 2.7 points from the previous month.

The increase was bigger than anticipated _ analysts were expecting a more modest rise to 87.7.

For the 27-nation EU as a whole, which includes non-euro members such as Britain and Sweden, the economic sentiment indicator increased 1.9 points to 87.9.

"Sentiment in industry ... was the main contributor to the overall improvement," the Commission said.

"While most managers reported small improvements in their order books _ except in the U.K. and Spain _ it was production expectations which had the largest positive overall effect," it said.

The Commission said industrial sentiment rose 2 points in the eurozone and one point in the EU _ both to minus 19.

It said consumer confidence was also on the up in the eurozone, rising one point to minus 17 but was unchanged at minus 15 in the EU.

Elsewhere in a separate survey, the Commission said its business climate indicator improved for the eighth month running in the eurozone to minus 1.56 in November from minus 1.79 in October.