Confidence about the future of the European Union (EU) economy remains relatively stable in January 2011, new figures show.

A report published by Brussels about economic sentiment also found it was broadly unchanged in the eurozone area.

The Economic Sentiment Indicator (ESI) stood at 105.8 within the EU and 106.5 in the euro nations, following seven months of continuous growth.

Of the seven largest states in the EU, the Netherlands saw the sharpest rise in confidence, growing 2.5 points during the month, while France climbed by 0.8 points.

The ESI continues to stand above its long-term average in Germany, France, the UK and the Netherlands, which could help such nations generate new employment opportunities.

Industry has also witnessed strong expansion in sentiment of 0.6 points in the EU and 1.1 points in the eurozone, as order books improved.

Recent figures have indicated the manufacturing sector is continuing to grow, with a 1.6 per cent increase in industrial new orders within the EU reported by Eurostat for November 2010.

Posted by Alex Donnell