Economic sentiment in Eurozone exceeds expectations

Confidence up in retail and construction sectors

Positive Eurozone economic sentiment has grown at a higher rate than expected in May, as inflation expectations amongst consumers and companies rose for the month.

The European Commission has revealed that economic sentiment in the 19 euro nations went up to 104.7 points for May.

This beat an upwardly-revised figure of 104 for April and a forecast May rise of 104.4 points.

Key to the increase was improved sentiment amongst both managers and consumers in the construction and retail trade sectors.

While confidence dropped slightly in the services sector, it remained stable for the industrial sector.

Meanwhile, the European Commission's business climate index climbed from an upwardly-revised April figure of 0.15 to 0.26 for May. It was a 0.10 increase on the forecast.

Following Federal Reserve Cahir Janet Yellen's suggestion that interest rates in the United States could increase "in the coming months", European shares enjoyed a one-month today. The dollar index achieved a two-month peak.