Eurozone economic confidence unexpectedly recovered in May, ending a nearly one-year series of declines. The reason for the improvement is the performance of the industry and the strongest increase in production forecasts for over six years. The figures are against the backdrop of the negative mood for export orders and the business climate.

A separate report has further boosted positivism in Europe. It makes it clear that lending to households and companies has accelerated in April.

Data is expected to give hope to those analysts who forecast acceleration in the second half of the year. The European Commission’s report on confidence in the economy shows strong values ​​in the Eurozone’s three largest economies – Germany, France, and Italy. Household loans in the Eurozone rose by 3.4% YoY, which is the fastest pace since January 2009.

In addition to the growing international trade strain, which also makes the economic mood worse, the European businesses also have to cope with the slower pace of the global economy and some local challenges such as the structural changes in the German automotive industry.

The minutes of the last meeting of the European Central Bank show that part of its leadership has already lost hope for a return to more solid growth. New forecasts for economic growth and inflation are expected next week when the bank will have to decide whether new incentives are needed to boost performance.

First quarter growth in the Eurozone surprised analysts with sustainable consumer spending, although current data suggest that the pace is unlikely to stay. The German index reaches its lowest level since 2014, while the Eurozone industry continues to shrink. The downgrade may accelerate if the US imposes customs duties on European car production. Earlier this week, Member of the ECB Executive Board, Peter Praet, said that “the waiting regime in which companies are located can be very harmful, especially for the industry”.