The European Commission released its economic sentiment index for the Eurozone on Monday. The index rose to 104.7 in May from 104.0 in April. April's figure was revised up from 103.9.

Analysts had expected the index to increase to 104.4.

The rise was driven by improvements in confidence among consumers and managers in the retail trade and construction sectors.

The industrial confidence index remained unchanged at -3.6 in May, in line with expectations. April's figure was revised up from -3.7.

The final consumer confidence index was up to -7.0 in May from -9.3 in April, in line with expectations.

The business climate index increased to 0.26 in May from 0.15 in April. April's figure was revised up from 0.13. Analysts had expected the index to climb to 0.16.

The rise in business climate index was driven by a more favourable managers' assessment of past production, the stocks of finished products and overall order books.