An array of upbeat euro zone economic data has bolstered hopes of a durable recovery in the region, but experts remained cautious.
In October, the dominant services sector grew at its fastest pace in 20 months and manufacturing activity expanded for the first time in over a year. Other statistics showed new industrial orders in the euro zone rose more than expected in August, underlining expectations of a recovery in the third quarter and beyond. German business sentiment rose slightly in October to its highest level in over a year, pointing to a steady if hesitant recovery in Europe’s largest economy. And consumer spending in France rose 2.3 percent month-on-month in September after falling one percent in August. However policymakers and analysts pointed out that the region’s economies remained propped up by record-low interest rates and massive stimulus spending which will have to be withdrawn at some point.