Eurozone economic sentiment up again in August

[August 30, 2010]  LONDON (AP) -- The European Commission says economic confidence in the 16 countries that use the euro rose to its highest level in nearly two-and-a-half years during August.

The commission says Monday that its main economic sentiment indicator rose to 101.8 in August -- its highest since March 2008 -- from 101.1 in July. The main reason behind the rise was another improvement in consumer confidence as unemployment concerns eased.

The increase in sentiment will stoke hopes that economic activity in the eurozone economy is holding up pretty well despite budgetary retrenchment in countries like Greece and a loss of momentum in the U.S. and Japan.

The eurozone economy grew by a quarterly rate of 1 percent in the second quarter.

[Associated Press]

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