Eurozone economic sentiment edged higher to a near six-year high in January, against expectations of a slight dip, as the mood in industry, services, the financial sector and among consumers improved, European Commission data showed yesterday.

The Commission’s monthly survey showed economic sentiment in the 19 countries sharing the euro rose to 108.2 in January from 107.8 in December, well above the long-term average of 100 and unmatched since March 2011.

Economists polled by Reuters had expected a slight dip in sentiment to 107.7. Separately, the Commission’s business climate indicator, which points to the phase of the business cycle, was unchanged at 0.77 points, the highest level since June 2011.

“The mildly positive developments in euro-area sentiment resulted from improvements in industry, services and consumer confidence which outweighed decreases in retail trade and construction confidence,” the Commission said in a statement.

Among the larger countries, economic sentiment decreased in France and very slightly in Germany. It rose strongest in Spain, Italy and the Netherlands.

Sentiment in industry jumped to 0.8 points from 0.0 in December, above market expectations and well above the long-term average of -6.5.

Sentiment in the services sector, which produces two-thirds of the eurozone’s GDP, also rose to 13.5 in January from a revised 13.1 in December, beating economists expectations.

Consumer inflation and producer price expectations also rose in January.

This is welcome news for the European Central Bank which has been buying billions of euros worth of eurozone government bonds on the market to inject more cash into the banking system and make banks lend more to the real economy to boost inflation closer to its target of below, but close to two per cent.