Euro area economic sentiment hits 17-year high

In October, economic sentiment in the single currency area hit its highest mark since January 2001, boosted above all by more robust readings for retail trade and construction.

The European Commission's Economic Sentiment Index improved from a level of 113.1 for September to 114.0 in October.

"More good news from one of our favourite European leading indicators. [...] The gains in sentiment are broad based with good news from all major sectors and most countries amid a favourable global backdrop. The political turmoil in Catalonia or the earlier rise in the euro exchange rate did not have any negative impact on the outlook so far, the sub-index for export orders in manufacturing climbed in October to a 6-year high," commented Carsten Hesse, European economist at Berenberg.

Subindices for confidence in retail trade and construction rose from 3.0 and -1.7 to 5.5 and 0.2, respectively.

Meanwhile, separate gauges for industry and services increased from 6.7 and 15.4 to 7.9 and 16.2.

Consumer confidence on the other hand was just a tad stronger, at -1.0 (consensus: -1.0), up from -1.2 in the month before.

To take note of, at the national level the improvement in confidence was starkest in Germany, where the national ESI jumped from 112.4 to 114.5.

The UK ESI also picked-up, rising from 109.2 to 110.7.