Euro economic confidence holds up in January

(BRUSSELS) - Confidence in Europe's economic future rose for a 10th successive month in January, despite data Thursday indicating a slowing of a fragile post-recession rebound.

The European Commission's economic sentiment indicator rose by 2.1 points to 97.1 points across the 27-nation European Union, and hit 95.7 points (up 1.6 points) in the 16 countries that share the euro currency.

The index is "now back at a level approaching its long-term average in both areas," a statement said.

Among the largest economies, Italy and Britain -- which officially exited recession this week -- reported the biggest statistical increases in positive sentiment, of 4.2 points and 3.2 points respectively.

Poland, Germany and France were narrowly up, but Spain -- the last major economy stuck in recession -- saw its level drop by minus 0.1 points.

Optimism within industry, which has largely driven expanding output over recent months despite the services sector being Europe's most important economic contributor, was the main driver of the improved mood.

It grew by 3.0 points in the EU and 2.0 points in the eurozone.

Consumer confidence showed just a slight improvement in sentiment from a low base across the full bloc and the continental core of 16 countries that use the euro.

The European Commission also said that confidence in financial services is now "stabilising at around the pre-crisis level."

A separate Business Climate Indicator for the euro area "remains at a low level, suggesting that year-on-year growth in industrial production was still negative in December," the commission added.

Economic Sentiment Indicator (ESI)

Business Climate Indicator