Rising optimism in France, Germany and the Netherlands boosted the overall sentiment in eurozone countries last month

Businesses and consumers in the eurozone have shrugged off political uncertainty to start 2017 with confidence at its highest level in more than five years.

The European Commission’s monthly survey of economic sentiment in the 19 countries sharing the euro rose for the fourth month in December to 107.8, boosted by rising optimism in France, Germany and the Netherlands.

This was up from 106.6 in November and well above the 106.8 reading expected by economists polled by Reuters, as well as its long-term average of 100.

Bert Colijn, ING’s senior economist for the eurozone, said: “The Italian referendum and subsequent concern about the Italian banking sector has not impacted confidence in the eurozone and it caused a mere stagnation in sentiment in Italy itself. Improving