BRUSSELS, May 31 (Xinhua) -- The economic confidence
in the euro zone climbed to a six-year new high in May, thanks to never better
consumer confidence, the European Commission said on Thursday.
The economic sentiment indicator in the 13-nation
bloc sharing the same currency stood at 111.9 in May, the highest level since
2001, after it remained almost stable at 111.0 in April.
The monthly indicator, based on business and consumer
surveys, also rose by 1.3 points to 114.9 in the European Union.
The surveys are conducted in different sectors of the
economy, namely industry, services, construction and retail trade as well as
consumers.
Rising consumer confidence was the main driving force
behind the improvement of the overall indicator, the European Commission said.
In May, consumer confidence increased markedly in
both the eurozone and the EU, approaching an all-time high. In both areas, the
indicator has been on a fairly steady upward path since the middle of 2005,
which has become even steeper during the spring of 2007.
In the euro zone, stronger economic confidence was
also supported by improved views in the retail trade sector, while confidence in
the other three sectors all declined by one point.
Similar situation went with the EU, where only
services confidence registered an increase, and the other sectors either
remained stable or declined marginally.
At the individual country level, the picture was
mixed, but a slight majority of countries showed an overall improvement in
confidence.
Germany, the largest economy in the 27-nation bloc,
registered an increase of 0.9 point. The indicator increased sharply by 2.3
points in France and 3.7 points in Britain. Italy recorded a fall of 1.6 points.
However, the business climate indicator for the euro
zone declined slightly in May, the European Commission said in a separate report
released today.
Managers' views on total order books, production
trend observed in recent months, production expectations for the months ahead
and stocks of finished products all deteriorated. The only component for which
managers' assessment improved was export order books.
But the indicator remained at a high level, pointing
to strong industrial production growth in the second quarter of 2007, the
commission said.