BRUSSELS (Reuters) – Eurozone economic confidence improved in June to a 21-year high, with the accelerated pace of Covid-19 vaccinations enabling more reopenings and a better climate across all sectors of the economy, especially in the retail and services.
The European Commission’s monthly survey of the 19 countries that share the euro showed on Tuesday that optimism rose to 117.9 points in June from 114.5 in May, beating Reuters poll expectations of an improvement to 116 .5.
Confidence was much better in services, the biggest sector in the eurozone that accounts for more than two-thirds of Gross Domestic Product (GDP). The sub-index rose to 17.9 points in June from 11.3 in May, well above expectations.
Confidence in the retail sector increased from 0.5 points in May to 4.5 points.
Optimism in industry, construction and among consumers has also increased, albeit more modestly.
Sentiment in Germany reached an all-time high and improved in the six largest European Union countries, except in Spain, where it declined slightly.
Consumers have also begun to expect higher inflation in the next 12 months, with the reading rising to a 13-month high to 24.7.
(By Philip Blenkinsop)
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