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OFFICIAL CORRECTION-Euro zone sentiment hits highest level since dot-com bubble burst
October 30, 2017 / 10:20 AM / 25 days ago

OFFICIAL CORRECTION-Euro zone sentiment hits highest level since dot-com bubble burst

 (Commission corrects when sentiment at highest level since)
    By Francesco Guarascio
    BRUSSELS, Oct 30 (Reuters) - Euro zone economic sentiment
rose by more than expected in October and hit its highest level
since the start of 2001, after the dot-com bubble had burst,
data from the European Commission showed on Monday.
    The near 17-year high confirms the solid economic recovery
of the 19-country currency bloc after a decade-long economic and
financial crisis.
    The European Commission's monthly survey showed that
sentiment in the euro zone rose to 114.0 in October from an
upwardly revised 113.1 in September. Economists polled by
Reuters had expected a more modest rise to 113.4.
    It was the highest reading since January 2001, when the
burst of the dot-com bubble had begun to hit confidence in the
euro zone. The index peaked at 119.0 points, its highest ever
level, in May 2000.
    The Commission's overall business climate index, a separate
indicator which points to the phase of the business cycle, also
rose to 1.44 in October from 1.34 in September -- its highest
reading since March 2011 when it was at 1.47.
    Optimism grew in all surveyed economic sectors, jumping to
16.2 points from 15.4 in September in services, the largest
sector in the euro zone.
    Confidence in industry grew to 7.9 from 6.7 and the retail
sector saw a rise of sentiment to 5.5 from 3.0.
    Consumers shared the positive mood, with optimism rising to
-1.0 from -1.2 in September, reaching the highest level in 16
years, data released on Monday showed, confirming a preliminary
estimate published last week             .   
    The euro zone's improving sentiment did not extend to
Britain where confidence among consumers dropped to -5.5 from
-5.2 in September.
    The positive reading for the 19-countries bloc sharing the
euro was only partly clouded by a drop in inflation expectations
among manufacturers to 8.6 from 10.5 in September. That could
limit corporate earnings and potentially curb output.
    Manufacturing production expectations dipped slightly, while
   export order books rose only marginally.
    Inflation expectations among consumers continued instead to
increase, to 14.7 from 14.2 in September.

 (Reporting by Francesco Guarascio; editing by Philip
Blenkinsop)
  

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