New data shows economic sentiment is improving across Europe, despite the fact much of the continent remains in recession.
In May, the Economic Sentiment Indicator was found to have picked up after March was flat and there was a deterioration during April.
In the euro area, it was noted in the report that the recovery was driven by brightening sentiment in all business sectors except for construction.
Italy (+1.5), the Netherlands (+1.2), France (+0.9) and Germany (+0.6) were the four main countries to have a positive sentiment, while views in Spain remained virtually unchanged (+0.1).
"Selling price expectations increased in all business sectors except for industry. The increase was sharp in retail trade," said the report.
Earlier in the week, the Organisation for Economic Co-operation and Development revised its growth forecasts for the eurozone downwards.
The body says the eurozone will shrink by 0.6 per cent this year and chief economist Pier Paolo Padoan told Reuters much of Europe remains in a "dire situation".
Learn about the sterling and forex trading at City Index
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.