Eurozone economic sentiment jumps in October, beats market expectations

Economic sentiment in the eurozone area jumped during the month of October, beating market expectations, driven by higher optimism in industry and services.

Euro zone economic sentiment indicator rose to 106.3 in October from 104.9 in September, well above market expectations of a small decline to 104.8, data released by the European Commission survey showed Friday.

Separately, the business climate indicator also calculated by the Commission, rose to 0.55 from 0.44 in September, its highest reading since July 2011. Selling price expectations among manufacturers rose sharply to 3.2 points in October from 0.0 in September and -0.8 in August, coming closer to the long-term average of 4.7, Reuters reported.

Among consumers, however, inflation expectations over the next 12 months remained subdued, easing to 4.3 in October from 4.7 in September and remaining well below the long-term average of 19.