BRUSSELS, Jan 30 (Reuters) - Euro zone economic
sentiment rose to a seven-month high in January on more optimism
across all sectors except construction, with inflation
expectations among consumers and companies both sharply down,
data showed on Monday.
The European Commission's Economic Sentiment Index (ESI)
rose to 99.9 this month, above an upwardly revised 97.1 in
December -- the highest value of the index since June 2022.
The rising optimism underlines expectations that an expected
economic downturn in the 20 countries sharing the euro, if there
is one at all, is likely to be shallow, despite the energy price
and cost of living crises and the war in Ukraine.
The monthly Commission survey showed inflation expectations
among consumers falling to 17.7 in January from 23.2 in
December, well below the long-term average of 20.0, a trend that
is likely to please the European Central Bank which has been
raising interest rates sharply to curb surging inflation.
Selling price expectations among manufacturers also dropped
sharply to 31.9 in January from 37.8 in December in a sign
inflationary pressures early in the pipeline were receding too.
The Commission said optimism in industry rose to 1.3 from
-0.6 in December and in services to 10.7 from 7.7. The mood
among consumers improved to -20.9 in January from -22.1 and in
the retail sector to -0.8 from -2.7.
(Reporting by Jan Strupczewski; editing by Philip Blenkinsop)
Messaging: jan.strupczewski.reuters.com@reuters.net))
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