Euro zone economic sentiment held up better than expected in December thanks to higher optimism in the economy's services sector, European Commission data showed this morning.
The commission's economic sentiment indicator eased to 104.7 points last month from 104.8 in November. Economists polled by Reuters had expected a deeper decline to 104.3 points.
The easing was mainly due to weaker sentiment in industry, retail trade, and construction, and among consumers. Sentiment in the services sector, which generates more than two-thirds of the euro zone's GDP, inched up.
Separately, the European Union statistics office said producer prices rose 0.8 per cent month-on-month and 4.1 per cent year-on-year in November, as expected by markets, driven mainly by higher energy and non-durable consumer goods prices.
Commission survey data also showed inflation expectations in December among producers rose to 13 from 12, staying well above the long-term average of six points.
But inflation expectations among consumers, which the European Central Bank monitors in its interest rate decisions, were stable at 28 points last month against November.