European Commission data showed on Friday that there had been more optimism across all sectors of the economy and a sharp drop in inflation expectations in December.

The Commission’s monthly economic sentiment index rose to 95.8 in December from 94.0 in November, the first upward movement after a slide from a record high of 114.0 scaled in February, the month Russia invaded Ukraine.

Consumers, retailers ad the construction industry were also all more optimistic, signalling that the expected economic slowdown in the last three months of 2022 and the first three months of 2023 is likely to be a shallow one.