(Bloomberg) -- Euro-area economic confidence edged higher for a second month thanks to improvements in industry and services.
A sentiment indicator published Thursday by the European Commission rose to 96.6 in August from a revised 96 the previous month — more than analysts in a Bloomberg survey had predicted.
Readings for industrial confidence and services both advanced, while consumer sentiment was down.
The data come despite signs that expansion in the 20-nation currency bloc appears to be weakening. The main reason is Germany, the region’s biggest economy, where output unexpectedly shrank between April and June. Beyond a temporary boost from the Paris Olympics, business surveys by S&P Global revealed that underlying activity in the private sector is under pressure.
Some help is likely from monetary policy, with inflation set to resume its pullback following a surprise uptick in July. The European Central Bank is expected to lower its deposit rate by another quarter-point on Sept. 12, to 3.5%.
--With assistance from Kristian Siedenburg.
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