European economic confidence rises again
(BRUSSELS) - European business and consumer confidence firmed in October for a seventh month running, an EU survey showed on Thursday, building on some encouraging news for Europe's struggling economies.
The European Commission's economic sentiment indicator for the 16 nations using the euro single currency rose to 86.2 points in October from 82.8 in September, continuing a climb away from a record low 64.6 points in March.
The October rise -- significantly bigger than the improvement the previous month -- was announced as data showed that unemployment in the EU's biggest economy Germany fell in October, providing a welcome boost for Europe as it crawls out of recession.
The raw unemployment rate, the headline figure in Germany, fell to 7.7 percent from 8.0 percent in September, as Europe's biggest economy began to emerge gradually from its worst recession in 60 years.
For the 27-nation EU as a whole, economic confidence also increased according to the commission survey, to 86 points in October from 82.6 points the previous month.
The improvement in both the eurozone and the wider EU was due to higher confidence in many sectors, particularly in industry, the commission said.
Howard Archer, chief economist at IHS Global Insight, described the figures as "pretty good reading.
"Overall economic sentiment encouragingly, not only rose for a seventh successive month in October, but improved at a markedly increased rate to be at a 13-month high," he said.
October's rise was driven by improved business sentiment, particularly among manufacturers, while consumer confidence climbed to a 16-month high.
"It is evident that both businesses and consumers are becoming less gloomy over the current state of the economy and are markedly more upbeat over recovery prospects," said Archer.
"Companies are also generally happier over their order books and stock levels, less downbeat about their recent business and more upbeat over production expectations," he added.
Meanwhile the commission's separate business climate indicator also improved in October in the eurozone, standing at minus 1.78 points in October, up from minus 2.07 points in September.
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