The economic sentiment indicator strengthened further in March with an increase of 0.8 points over February in both the euro-zone and the whole European Union (EU), according to a survey of the executive European Commission released on Friday.

The indicator, which has been on an upward trend since the summer of 2005, is now at its highest level since mid-2001 in both areas.

In terms of sectors, apart from consumer confidence, which eased slightly by one point in both the euro-zone and EU-wide, confidence has grown in all other sectors.

The retail sector showed the largest improvement with a rise of four points in the euro area and two points EU-wide.

An increase of one point in confidence was reported by managers in the industry and services sectors in both areas. Confidence in the construction sector improved by two points in the euro area, while remaining unchanged in the EU.

At the national level, the picture is mixed. Among the larger member states, Spain and Germany reported relatively large improvements of 3.0 and 1.5 points respectively, while France saw economic sentiment fall by 1.6 points. In Italy, Poland and Britain, the changes in economic sentiment were by a margin of less than 0.5 points.

The monthly economic sentiment indicator reflects the general economic activity of the EU and the euro-zone. This indicator combines assessments and expectations stemming from business and consumer surveys.

Source: Xinhua