08:03 AM EST, 11/27/2025 (MT Newswires) -- In November, the European Commission's economic sentiment indicator climbed to 97 from 96.8 in October, said ING after Thursday's data.

However, industrial confidence dipped, mainly due to dwindling orders -- especially from exports. Factors like higher United States tariffs and a strong euro (EUR) are making export growth less predictable, wrote the bank in a note.

At the same time, inventory assessments dropped to their lowest point since May, which could pave the way for increased production early next year, pointed out ING.

Meanwhile, the services sector saw its highest confidence in over a year, with retail and construction confidence also on the rise. Construction sentiment is now at its strongest since June 2023.

Employment expectations presented a mixed picture: they improved in retail and construction but fell in services and industry. Unsurprisingly, consumer confidence remained stable in November, stated the bank.

Inflation data still shows some stickiness, it added. Selling price expectations climbed above the long-term average in every sector, and consumers anticipate faster price increases ahead. Even though falling energy prices may soon drag headline inflation below 2%, Thursday's figures indicate that underlying inflation will likely ease only slowly.

What looks certain is that the eurozone's economy remains on a growth track, although a subdued one, noted ING. A meaningful uptick may not occur until Germany's budgetary stimulus kicks in, expected no sooner than the second half of 2026.

Given these trends, the European Central Bank will likely keep interest rates unchanged: there's no need for more stimulus, and inflation doesn't warrant any drastic new monetary policies, according to ING.