Eurozone consumer sentiment 'most bullish' since 2011

Business leaders and households in the eurozone are in their most bullish mood for more than two years, buoying hopes for UK exporters in their biggest market.

The European Commission’s index of consumer and business sentiment rose to 101.2 for February, the highest since July 2011 and defying expectations of a decline.

The improvement — consistent with 0.3 per cent growth in the current quarter — could prompt the European Central Bank to hold fire on interest rate cuts despite low inflation, analysts said.

ING Bank’s Martin van Vliet said recent turmoil in emerging markets had not dampened eurozone sentiment.