Eurozone consumer confidence improves to highest in a year

CONSUMER sentiment in the euro area rose to the highest in a year — a sign of resilience and rising hope that the region can dodge recession this year.

A gauge of confidence compiled by the European Commission increased to -19 in February from -20.7 in January, according to a release on Monday (Feb 20). That’s in line with a reading by economists surveyed by Bloomberg.

An unexpectedly mild winter will probably help the 20-nation eurozone avoid an economic downturn following the spike in energy prices triggered by Russia’s war in Ukraine.

The outlook is also brightening thanks to slowing inflation, though the European Central Bank remains wary of underlying price pressures and is continuing to raise interest rates. BLOOMBERG