Euro zone consumer confidence jumped much more than expected in January, a flash estimate from the European Commission showed today.

This further underlined the momentum in the economy that is growing at its fastest in a decade. 

The Commission said consumer confidence in the euro zone in January rose to 1.3 points from 0.5 points in December, well above market consensus of an increase to 0.6. 

This is the highest level of the indicator since August 2000. 

In the wider European Union, confidence jumped 1.0 point to 0.4 points, the Commission said. This was the highest level since January 2001. 

Analysts said that the outlook for domestic demand remains very favourable, confirming expectations of continued strong GDP growth early in the year. 

They said that the current mood among consumers is nothing short of ecstatic and current levels of confidence are generally associated with further acceleration in household consumption growth.

Uncertainty about possible euro zone reforms, Italian elections and the success of the German coalition negotiations were clearly taking a backseat to improved economic factors, the analysts noted. 

Unemployment in the euro zone is at nine-year lows and while unemployment expectations have become slightly less favourable over the last months of 2017, businesses were signalling they expected to hire.

The highest level of the index, which dates back to 1985, was the 2.1 points hit in May 2000.