Economic sentiment in the euro zone rose to a new two-year high in October, but the increase was less than in recent months, according to a key indicator released on Wednesday.
Optimism, nevertheless, rose more than forecast from 96.9 in September to 97.8 in October, the European Commission said in its closely watched Economic Sentiment Indicator (ESI).
Analysts had forecast a rise to 97.5 this month.
“The ESI’s increase was driven by improved confidence in industry and, to a lesser extent, among consumers,” the commission said, adding that “confidence weakened in services, retail trade and construction.” Among the euro zone’s five largest economies, the EU’s executive found that economic sentiment improved in the Netherlands, France and Germany but deteriorated in Spain and Italy.
Another euro zone economic index, the Business Climate Indicator, rose 0.18 points to -0.01 in October, coming “close to its historic long-term average,” the commission said. The index has been steadily increasing since April.