BRUSSELS, Jan 28 (Reuters) - Euro zone economic sentiment jumped more than expected in January and December's figure was revised sharply upwards, data showed on Thursday, pointing to continued economic recovery.
A monthly survey by the European Commission showed economic sentiment in the 16-country euro zone rose to 95.7 points -- well above the 92.4 forecast by economists in a Reuters poll -- from 94.1 in December.
The December figure was revised from a previous reading of 91.3.
"Although the rebound appears to be slowing, the indicator is now back at a level approaching its long-term average in both areas (the 27-country European Union and the euro zone)," the Commission said in a statement.
The rise was mainly driven by a 5-point improvement in sentiment in retail trade to -5 points. There were 2-point improvements in the industrial and services sectors to -14 and -1 respectively.
Consumer sentiment stagnated at -16, while construction fell by 1 point to -29.
Separately, the Commission said its business climate indicator increased to -1.12 in January, broadly in line with expectations among analysts. The index's December level was revised down to -1.30 from -1.22.
"The business climate indicator for the euro area rose for the tenth successive month. Nevertheless, it remains at a low level, suggesting that year-on-year growth in industrial production was still negative in December," the Commission said.
Expectations of price trends over the next 12 months among consumers jumped to -2 from -6 points as fewer people expected consumer prices to decline.
Selling-price expectations in industry rose to -6 in the euro zone from -10 in December, the data showed, while selling-price expectations in services eased to -6 from -5.
Capacity utilisation in the manufacturing industry rose in the first quarter of 2010 to 72.4 percent from 71 percent in the last quarter of 2009 and a low of 69.6 percent in the third quarter. (Reporting by Marcin Grajewski and Jan Strupczewski, editing by Dale Hudson)