Azernews.Az

By Bloomberg

Euro-area economic confidence hit four-year high this month, boosted by relief Greece isn’t about to give up the euro.

The index of executive and consumer sentiment rose to 104 from 103.5 in June, the European Commission said Thursday. Economists’ predicted a decline to 103.2, according to the median estimate in a Bloomberg survey.

Although economic momentum within the 19-country bloc has struggled to find solid ground and the region’s woes have burdened sentiment, the outlook may be bolstered by a deal granting Athens a third bailout, averting its exit from the euro area.

The Commission’s report showed industrial confidence in the region improved to minus 2.9 from minus 3.4 in June. Sentiment among consumers was confirmed at minus 7.1 in a second reading, while confidence in the services sector increased to 8.9 from 7.9.

Output probably expanded for a ninth quarter in the three months through June and a gauge of manufacturing and services activity published last week showed the economy maintained its pace of growth at the start of the third quarter. Germany’s closely watched Ifo business sentiment index unexpectedly rebounded in July as concerns about the crisis in Greece eased.

Even so, consumer-price growth is uncomfortably low, and unemployment, particularly in southern European states, is stubbornly high. Moreover, the state of affairs in Greece remains precarious and there are concerns that Prime Minister Alexis Tsipras will struggle to implement the reforms he’s proposed in return for a new bailout.