In December, the Economic Sentiment Indicator (ESI) increased further, continuing the upward trend observable since autumn 2016. The indicator increased strongly by 1.4 points in the euro area (to 116.0), and by 1.6 points in the EU (to 115.9), reaching its highest levels since October (euro area) and August 2000 (EU). The more optimistic euro-area sentiment recorded in December was broad based, primarily boosted by marked increases in confidence in the services, retail trade and construction sectors. Confidence rose further in industry and among consumers as well. Amongst the largest euro-area economies, the ESI rose strongly in France (+2.3) and Germany (+1.6) and, to a lesser extent, in the Netherlands (+0.7), while it remained unchanged in Italy (0.0) and decreased slightly in Spain (-0.8). The marginally more optimistic outcome for the EU ESI (+1.6) resulted from a marked improvement of sentiment in the largest non-euro area EU economy, the UK (+3.6); also Poland (+1.2) recorded a plus. In line with the euro area, confidence improved strongly in services, construction, financial services and, to a lesser extent, in industry.