(MENAFN- Khaleej Times) An index of executive and consumer sentiment rose to 100.9 from a revised 100.4 in December, the European Commission in Brussels said on Thursday. That's the highest reading since July 2011, though it missed the median estimate of 101 in a Bloomberg News survey of 34 economists
European stocks and bonds have rallied amid signs that growth is gradually picking up in the euro zone, with economists estimating a 0.2 per cent expansion in the fourth quarter after 0.1 per cent growth in the previous three months, according to a Bloomberg News survey. Sovereign borrowing costs this month fell to euro-area records from Greece to Ireland while the Stoxx Europe 600 Index hit a six-year high
The commission's index of confidence in the services industry rose to 2.3 in January, exceeding forecasts, today's report showed. Consumer confidence improved to minus 11.7 from minus 13.5 in December, and retail confidence rose to minus 3.4 from minus 5, the commission said
Inflation probably accelerated to 0.9 per cent in January, according to a separate Bloomberg survey of economists. If that forecast is confirmed tomorrow, the rate will have been below the ECB's 2 per cent ceiling for a year. That may help reboot spending as households gain purchasing power
Still, European Central Bank President Mario Draghi this month strengthened a pledge to keep interest rates low for as long as necessary. The economy is still struggling to grow amid subdued prices and the threat of rising market rates as the US Federal Reserve tapers its monetary stimulus. Unemployment is at a record 12.1 per cent
"Interest rates are low, but they can still be cut if needed," ECB Governing Council member and Bank of Italy Governor Ignazio Visco said on January 24. Within the ECB's mandate, "there are assets that can be considered" for direct purchase in case of crisis, he said
Industrial confidence slipped to minus 3.9 from minus 3.4 in December, today's report showed, whereas economists had forecast an improvement to minus 2.9. In the construction industry, sentiment slumped to minus 30.1 from minus 26.4
Ford, the second-largest US automaker, is monitoring European job numbers as it counts on more drivers replacing aging vehicles to boost sales. "The unknown is when the unemployment levels start to change, and that would be an accelerant," Stephen Odell, president of Europe operations, said this month
The December unemployment rate, which will be published tomorrow, is forecast to hold at 12.1 per cent, according to a Bloomberg survey of economists
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