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Eurozone consumer confidence showed a steady improvement in August, figures from the European Commission showed on Monday, although the longer term prospects for the region's growth remain uncertain. The Commission's flash estimate of consumer optimism in the 16-country currency area rose to -11.7 this month from a revised 14.0 in July (previously reported as 14.1), the data showed.
The figure puts the index at a 27-month high. Across the whole 27 country European Union, sentiment improved to -11.4 from -13.8. Consumer morale is among a string of recent economic indicators that have pointed to a steady recovery by the eurozone economy from the financial and economic crisis, although expectations are that growth will taper in the second half of the year after a strong showing in the second quarter. While exports have been strong, the rebound has not filtered through to consumer demand, which will be the driver of any long-term and sustained return to growth for the region.

Copyright Reuters, 2010

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