THE continuing decline in Irish and European manufacturing has led for fresh demands on the European Central Bank to cut interest rates further.

Although the US economy has moderated over the Summer, with GDP growth falling back to 3%, consumer spending growing by only 1%, and employment rising by less than expected in July, there are indicators that the economy is poised to pick up again in the short term, according to Michael Crowley, senior economist, Bank of Ireland Global Markets.

The European Commission said today that the euro zone economic sentiment indicator rose to 95.8 in January from 95.6 in December.

The euro zone's harmonised index of consumer prices (HICP) rose a final 2% year-on-year in December, revised down from a provisional estimate of a rise of 2.1%, EU statistics office Eurostat said today.

The euro zone posted a trade surplus of €5bn in November, compared with a €9.1bn surplus a year earlier, the EU statistics office Eurostat said today.

A European Commission spokesman said the early estimate for the eurozone's harmonised index of consumer prices in September is "not a very positive result".