A measure of euro zone economic sentiment gained by more than expected in February, lifted by the services and construction sectors and consumers, while inflation expectations jumped sharply among companies and households.
The European Commission's monthly survey showed that economic sentiment among the 17 countries using the euro rose to 107.8 this month from a revised 106.8 in January, above economists' expectations.
Sentiment gained in all sectors of the economy, most markedly among builders, consumers and in the services sector.
It also improved in the seven largest members of the EU as a whole, except for France and Italy. The sharpest increases were in Poland and Britain, followed by Spain, Germany and the Netherlands.
'The ESI (economic sentiment indicator) is now above its long-term average in six out of the seven largest member states, with Spain still catching up,' the Commission said in a statement.
The separate business climate indicator for the euro zone was revised down to 1.45 in January from a previous 1.58, and held steady into February. This was the highest level since May 2000.
'The current level of the indicator is very close to historical peaks, suggesting that the recovery in industry will continue in the coming months,' the Commission said.
It added that order books, export orders and production expectations increased, but was counterbalanced by lower production assessments for recent months and the perceptions of increased stocks of finished goods.
The Commission survey also showed a sharp increase in consumer inflation expectations for the next 12 months, with the index hitting 25.7 points from 20.9 in January, significantly above the long-term average since 1990 of 20.6 points.
Inflation expectations among manufacturers rose to 22.7 points from an upward-revised 17.3 in January, well above the long-term average of 5.6 points.
