The euro-zone economy shrank again in February, but at the slowest pace since September last year as businesses took a less bleak view of economic prospects, a measure of activity showed Friday.
The Centre for Economic Policy Research and the Bank of Italy's monthly EuroCoin indicator rose for a second straight month to -0.06 in February. That was up from -0.14 in January, and the strongest level since September last year when it was 0.03.
The EuroCoin indicator is intended to estimate quarter-on-quarter growth in gross domestic product, excluding erratic components, such as seasonal variations and short-run volatility.
"The result is due mostly to less pessimistic evaluations of firms and consumers," the CEPR said.
The euro-zone economy contracted 0.3% on the quarter in the final three months of 2011. That was the first contraction since the second quarter of 2009, and many economists expect it to be followed by a further contraction in the first three months of 2012--a view borne out by the EuroCoin measure remaining in negative territory in the first two months of the year.
But, after a likely brief recession--which in the U.K. is generally considered to be at least two straight quarters of economic contraction--there are hopes the 17-country economy can eke out growth by the second half of the year.
An agreement bringing an end to the tumultuous Greek debt-crisis discussions, which have weighed on business activity and confidence for some time, and progress on other euro zone-wide fiscal safety measures are likely to help bring much-needed economic expansion.
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