Euro area economic confidence posts surprise increase in September

Euro area residents' confidence in the economy edged higher unexpectedly last month, the results of a closely-followed batch of surveys revealed.

The European Commission's Economic Sentiment Index improved from a reading of 117.6 for August to 117.8 in September.

Industrial confidence was especially buoyant, improving from 13.8 to 14.1 (consensus: 12.5).

A separate gauge tracking consumer confidence was confirmed at -4.0, which was up from -5.3 in the month before and in line with economists' forecasts.

Yet it was sentiment in construction that was most buoyant, with the corresponding sub-index jumping from 5.5 to 7.5.

Sub-indices for services and retail trade on the other hand declined.

By countries, the biggest increases in the ESI versus the prior month were seen in Spain, Germany, the Netherlands and Poland.

That was in contrast to declines in France and Italy.