The eurozone's index of economic confidence rose to its highest level in more than 20 years in June as shops, restaurants and other services reopened to lift the economy out of the gloom of the epidemic.
The Eurozone economic confidence index released by the European Commission rose to 117.9, exceeding the expectations of almost all economists surveyed by Bloomberg. Upsurge in optimism in the service sector contributed to this growth, but industry, retail trade and construction also improved.
With the decline in infection rates and the lifting of restrictions on epidemic prevention, the region's economy is rebounding rapidly. Many countries expect demand to surge in the summer months as travel and business activities resume, but some remain cautious about the spread of the mutated virus.
"there are still health risks," French Finance Minister Bruno Le Maire told CNews television on Tuesday. He urged people to be vaccinated. "the only obstacles to a strong economic recovery in 2021 and a return to normal in early 2022 are mutated viruses and epidemic risks."
Confidence rose in five of the EU's six largest economies, with only Spain falling slightly.
Services in the eurozone improved "significantly" for the fourth month in a row, with industrial confidence at an all-time high. However, the supply crunch continues to put some pressure on manufacturers, with inventories running tight at an all-time high.
Consumer confidence rose for the fifth month in a row, and employment expectations also rose, mainly driven by more optimistic hiring plans in industry and services.