Economic sentiment in the eurozone unexpectedly picked up in May, buoyed by improved mood in the industrial sector, according to the European Commission's monthly business and consumer survey.
The economic sentiment indicator rose to 105.1 this month from a revised 103.9 in April. Econoday had predicted that the indicator would stay at its original reading of 104.0.
Industrial confidence improved to negative 2.9 from negative 4.3 previously, reflecting the sharpest increase in managers' production expectations in 6.5 years and more favorable assessments of the stocks of finished products, the survey said.
Retail trade sentiment ticked down to negative 1.2 from negative 1.1.
Business sentiment in the services sector rose to 12.2 from 11.8. Construction confidence fell to 4.1 from 6.5 amid less favorable assessments of order books and employment expectations.
Consumer confidence came in at negative 6.5, compared with negative 7.3 in April, reflecting households' more upbeat financial outlook.