The flash reading for April Eurozone consumer confidence strengthened significantly to -3.6 from a final March reading of -5.0 and was stronger than consensus forecasts of -4.8.
After a brief dip in confidence in February, the index has resumed its upward trend and the flash reading was close to the highest level for nine years.
There is no breakdown of the data in the flash reading, but it is likely that a decline in headline inflation and moderation in energy prices had an impact in supporting consumer sentiment, especially as the dip in confidence coincided with the increase in headline inflation.
The moderation in inflation will ease fears over a decline in real incomes which will underpin confidence.
The labour market has also remained strong with falling unemployment while the Markit April PMI employment index registered the strongest gain in jobs for close to 10 years. Improved confidence suggests that wages growth may also have strengthened.
There is also no evidence from recent data that political uncertainty has had a significant impact in dampening confidence.
Overall spending levels should remain firm in the short term which will boost underlying growth in the Eurozone.