Economic sentiment ‘picking up’ in EU

<p>A new report shows economic sentiment is improving.</p>

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".

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