BRUSSELS Nov 29 Morale in the euro zone's
economy improved for the first time in almost a year in
November, but signs of stagnant investment plans for next year
in industry dampened hope of a quick recovery from recession.
Economic sentiment in the euro zone rose 1.4 points to 85.7,
ending an eight-month run of falls, the European Commission's
monthly business and consumer survey showed on Thursday, beating
However, the Commission's survey of industry found
expectations of a 1 percent fall in real investment in 2013
compared to this year, casting doubt on optimism among European
policymakers that growth will return next year.
The euro zone fell into a recession in July-September, its
second since the global financial crisis in 2009, as French
resilience could not make up for a slump across Europe and the
three-year debt crisis slowed Germany to a crawl.
The Commission sees 0.1 percent growth in the euro zone
economy next year, but the OECD and many international
economists see the recession continuing in 2013.
"We expect the euro area to remain in recession in 2013,"
Citigroup said in a research note this week, predicting more
interest rate cuts by the European Central Bank to try to
stimulate the economy, which generates a fifth of global output.
Still, economic sentiment in November was better than the
decline expected by economists polled by Reuters and the
Commission said confidence in industry increased significantly
by the first time since February, helped by orders.
That may be a sign that the euro zone, while struggling at
home with the debt crisis, may be benefiting abroad as the U.S.
and Chinese economies regain some strength.
Separately, the Commission's business climate indicator,
which points to the phase of the economic cycle, increased by
0.42 points to -1.19, and showed an improvement in the mood
across much of the economy, including order books and output
Economists polled by Reuters had expected a figure of -1.60.