Economic confidence in the euro zone regained momentum in March, after it fell for the first time in 11 months in February, a survey conducted by the European Commission showed on Monday.
The economic sentiment indicator for the 16-nation bloc sharing the euro improved significantly by 2.0 points to 99.6, while in the 27-nation European Union (EU), the monthly indicator, based on business and consumer surveys, rose by 1.8 points to 97.7.
After the pause recorded in February, the upward trend appeared to have regained its momentum. The commission said the index is now close to its long-term average, although it will still require further improvement for the economic activity to reach its pre-crisis level.
The surveys are conducted in different sectors of the economy, namely industry, services, construction and retail trade as well as among consumers.
Regarding individual sectors, sentiment in industry increased by 3 points in the euro zone and by 2 points in the EU. The sharp rebound in confidence, picking up again after having levelled off in February, was the main driver of the overall improvement, with Germany, the largest economy, contributing the most.
Confidence in services remained unchanged in the euro zone and improved by 1 point in the EU. The retail sector improved by 2 points in the euro zone and by 1 point in the EU. Positive signals emerged also in construction, which increased by 3 points in the euro zone and by 2 points in the EU.
In line with the flash estimate, confidence among consumers remained broadly unchanged in both the euro zone and the EU.
Confidence in financial services, which is not included in the overall index, declined by 2 points in the euro zone and improved by 1 point in the EU. Confidence remains broadly at its pre-crisis level.
The majority of EU member states reported a general improvement in sentiment. Among the largest ones, Germany reported the most significant increase of 3.4 points, followed by Poland, Britain and the Netherlands.
Meanwhile, the business climate indicator (BCI) for the euro zone improved further, marking one year of uninterrupted recovery, the commission said in a separate survey.
The rebound of the indicator suggests that economic activity in the industry sector will continue to recover in the coming months, although it has still some way to go to reach its pre-crisis level, the commission said./.