Euro-area economic confidence index rises to 94,4

PanARMENIAN.Net - Euro-area confidence in the economic outlook improved more than economists forecast in February, adding to signs of stabilization after the economy contracted in the fourth quarter.

An index of executive and consumer sentiment in the 17- nation euro area rose for a second month, increasing to 94.4 from 93.4 in January, the European Commission in Brussels said today, Feb 28. Economists had forecast a gain to 94, the median of 31 estimates in a Bloomberg News survey showed.

Germany’s economy, Europe’s largest, has helped soften the impact of tougher austerity measures across the region as companies boost output and hiring to meet export demand. German business confidence rose more than economists forecast to a seven-month high in February and investors became more optimistic. European Central Bank President Mario Draghi said yesterday, Feb 27 that while some euro-area nations may see a “mild” recession, the overall situation “seems to be stabilizing.”

“The euro-region economy will continue to shrink in the current quarter, but the question is what’s going to happen afterward,” said Jens Kramer, an economist at NordLB in Hanover, Germany, Bloomberg reports.