Eurozone economic sentiment hits three-year high

Eurozone economic sentiment hit a three-year high in May, according to figures released on Friday.

The European Commission’s index of eurozone economic sentiment rose to 114.5 in May from a revised 110.5 the month before. This was ahead of expectations for a reading of 112.1.

The EC said the latest reading was "markedly above its long-term average and pre-pandemic level, close to its December 2017 peak".

Pantheon Macroeconomics economist Claus Vistesen said: "The headline surveys in the EZ continue to signal barnstorming growth midway through Q2 as the economy gradually reopens, and vaccination continues apace.

"The headline was boosted primarily by a leap in services confidence, to 11.3 after a revised 2.2 in April, while the industrial confidence gauge edged higher, to 11.5, from a revised 10.9 in April.

"Across the major economies, sentiment improved the most in Italy and France, though the rise was broad-based overall. The EC sentiment index is not a good spot-indicator for GDP growth, but its message is clear, and positive, all the same. Economic activity in the EZ is now rebounding; robustly."