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Berlin - The economic mood in the eurozone brightened in November with a key sentiment survey released Thursday rising to its highest level in more than two years.
Economic sentiment in the 17-member currency bloc rose for the eighth-consecutive month to 98.5 from 97.7 in October, the European Commission's closely watched Economic Sentiment Indicator showed.
The index, which measures the mood among executives and consumers, now stands at its highest level since August 2011. The November reading was slightly above analysts' forecasts of 98.
But the release of the index came with a warning from the European Commission: "The improvement in confidence has noticeably decelerated over the past two months."
Economists also played down the improvement in the ESI.
"We would not see the better mood as a signal of a solid pickup in the eurozone economy during the final quarter of this year," said Commerzbank economist Christoph Weil.
The ESI'S release followed the European Central Bank's (ECB) decision earlier this month to cut rates to an historic low of 0.25% in a bid to shore up the fragile eurozone economy.
The currency bloc grew by a meagre 0.1 per cent in the three months to end of September, according to data released this month by the European Commission.
The release of the ESI also coincided with the publication of ECB data showing loans to households and companies in the eurozone falling at a faster pace in November than in October, which could act as a drag on the region's economic growth.
The slump in loans is likely to add to the pressure on the ECB to take further action to ensure the eurozone remains on a growth path.
"This month's rate cut was probably not the final move from the ECB to fight the crisis," said ING Bank economist Peter Vanden Houte.
