Eurozone economic sentiment up

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Economic confidence in the 16 eurozone nations rose to its highest level in nearly two-and-a-half years during August. The optimism is expected to fuel hopes that economic activity in the eurozone is holding up pretty well.

The European Commission said the main economic sentiment indicator rose to 101.8 in August from 101.1 in July. It attributed the increase to improvement in consumer confidence due to eased unemployment concerns. But the European Commission also said the economic outlook for the second half of the year remains less favorable, given job and deficit conditions.

While Monday's figures will likely cheer policymakers, economists say the European Central Bank is not expected to change monetary policy at its Thursday meeting. It's likely to keep the main interest rate unchanged at 1 percent.