Eurozone economic sentiment climbed to a near 10-year high in April against expectations of almost no change as confidence in all sectors improved and inflation expectations dampened, EU data showed yesterday.

The European Commission’s monthly survey produced an overall index for the 19-country currency bloc of 109.6 from 108.0 in March, the highest level since August 2007. Economists polled by Reuters had expected a modest increase to 108.1 points.

A separate business confidence indicator, which indicates the phase of the business cycle, rose to 1.09 in April from 0.83 points in March, and above market expectations for no change. The increase in overall economic sentiment was mainly caused by multi-year highs of optimism in industry, the services sector, among consumers and builders.

In Britain, which has now triggered its planned exit from the EU, overall sentiment slightly improved. However, consumer confidence dipped during the month. Respondents were more downbeat about economic prospects, unemployment and savings.

Inflation expectations declined among consumers and manufacturers, reflecting a slide in oil prices and the sharp fall of inflation in March. It is seen rising in April, with a flash estimate due to be released today.

Rising inflation and solid growth could put pressure on the European Central Bank to end its monetary stimulus.