Euro zone economic sentiment hits 2003 high

Economic sentiment in the euro zone rose to a new high for 2003 in September while inflation remained stuck above the European…

Economic sentiment in the euro zone rose to a new high for 2003 in September while inflation remained stuck above the European Central Bank's threshold, data showed today.

The European Commission's index of economic morale in the 12-nation euro zone rose to 95.4 in September from 95.0 in August, the highest level so far this year.

The index in July was revised to 94.6 compared with a previously reported 98.0.

The overall improvement in sentiment was based on a rise in industrial confidence to -9 from -11 in August while consumer confidence was steady at -17.

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The euro zone inflation rate remained stuck at 2.1 per cent in September, unchanged from August and above the ECB's pain threshold of 2 per cent for a second month in a row, Eurostat data showed.

The first estimate of inflation in the 12-nation euro zone follows a rise in Italian consumer prices in September to their highest rate this year, while German inflation in the same month was unchanged at 1.1 per cent year-on-year.