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What's driving the euro zone revival?

Tuesday, March 17, 2015 - 01:42

European car sales have risen again and there's more positive economic data from Germany. As Hayley Platt reports the spending trend seems to be continuing.

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European shares are motoring - so too is investor morale - in Germany at least. The mood there has improved for a fifth month in a row hitting its highest level since February 2014 Even the Europe's once troubled car industry is following the trend. New vehicle sales in the European Union rose by 7 percent in February. They've consistently grown for the past 18 months. Will Hobbs is a market analyst at Barclays. (SOUNDBITE) (English) WILL HOBBS, HEAD OF EQUITY STRATEGY, SAYING: "It's a good indicator of consumer demand, consumer confidence. For some years we did point out the average age of the car stock in Europe there has been lots of room for Europe consumers to start buying cars again, certainly more than in the US recently." All major markets grew in February. The biggest was Spain by 26 percent. Italy increased by 13 percent. And the UK by 12 percent. Germany and France rose 6.6 percent and 4.5 percent respectively. France's relatively poor performance remains a worry. (SOUNDBITE) (English) WILL HOBBS, HEAD OF EQUITY STRATEGY, SAYING: "The reforms they've so far talked about and managed to squeeze through the parliamentary process have been pretty minor scale. Not much has changed in terms of the backdrop of France." Germany's car makers were again among the top risers with sales at Volkswagen up almost 13 percent. Europe's best-selling car brand is targeting another record operating profit for 2015 - topping last year's 1.7 billion euros.

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What's driving the euro zone revival?

Tuesday, March 17, 2015 - 01:42