Euro-Area Economic

Euro-Area Economic Confidence Rises More Than Forecast

Economic confidence in the euro-area rose more than economists forecast in November, adding to signs the currency bloc’s recovery is gaining momentum.

An index of executive and consumer sentiment increased to 98.5 from 97.7 in October, the European Commission in Brussels said today. That’s above the median estimate of 98 in aBloomberg News survey of 31 economists.

With unemployment hovering at the lowest in two decades, German households are preparing to spend 6.7 percent more on average on Christmas festivities than they did a year ago, according to a study from Deloitte LLP this month. Photographer: Krisztian Bocsi/Bloomberg

European new car sales have risen for two consecutive months for the first time since 2011, helped by a cash-for-clunkers program in Spain. Photographer: Angel Navarrete/Bloomberg

Euro-area economic growth cooled in the third quarter and the European Central Bank cut its main refinancing rate to a record-low 0.25 percent on Nov. 7, based in part on its forecast for “continued, albeit modest, growth in the second half of the year.” ECB President Mario Draghi said a “gradual strengthening of demand for exports” should contribute to growth.

The euro was higher against the U.S. dollar after the data, trading at $1.3596 at 10:05 a.m. in London, up 0.1 percent on the day.

Economists see euro-zone economic growth accelerating to 0.4 percent in the fourth quarter after a 0.1 percent expansion in the three months through September, according to a Bloomberg survey published on Nov. 18. They project a full-year contraction of 0.4 percent.

European new car sales have risen for two consecutive months for the first time since 2011, helped by a cash-for-clunkers program in Spain. Sales advanced 4.6 percent from a year earlier in October, propelled by increases of 14 percent atRenault SA (RNO) and 6.2 percent at General Motors Co. (GM)

Job Losses

With the euro-region recovery remaining uneven, some companies are continuing to cut jobs. German unemployment rose for a fourth month in November, data showed today.

PSA Peugeot Citroen (UG), Europe’s second-largest carmaker, is looking at removing capacity from its Mulhouse plant in France, spokesman Pierre-Olivier Salmon said on Nov. 21. The closure of Spanish white-goods manufacturer Fagor will lead to about 10,000 job losses, Cinco Dias reported on Oct. 31