Eurozone economic confidence at highest level since May

Economic confidence in the eurozone improved for the third month. This improvement increased expectations for a moderate recovery in the region’s economy. According to data released by the European Commission, the economic confidence index in the eurozone rose to a final of 96.4 in December. This was the highest level since May. The November figure was also revised from 93.8 to 94. Consumer confidence was revised from minus 15.1 to minus 15. Aggressive monetary tightening, weak growth in China and the energy crisis have had a negative impact on the eurozone economy. Economists surveyed by Bloomberg expect the eurozone to contract by 0.1 percent in the last quarter of 2023 and enter a recession. Inflation in the eurozone is expected to rise in December as governments’ support for high energy costs ends.