Sentiment improves despite inflation

ECONOMIC sentiment in the 12-nation eurozone improved to its highest level in a year in October, but the inflation rate at 2.1% remained stuck above the European Central Bank’s threshold for a third month in a row, data showed on Friday.

The main driver of the improving sentiment was eurozone businesses, with retailers clearly more upbeat, and industry continuing to grow more optimistic, the European Commission said.

Consumer confidence, however, remained unchanged for the second month in a row in October, as households turned more pessimistic about their financial situation over the next 12 months.