BRUSSELS, Oct 29 (Reuters) - Rising optimism in industry and services boosted euro zone economic sentiment by much more than expected in October, data showed on Thursday, while consumer expectations of inflation remained unchanged.
A monthly survey by the European Commission showed economic sentiment in the 16-country euro area jumped to 86.2 points in October from 82.8 points in September, well above Reuters consensus estimates of a rise to 84.0 points.
Sentiment in industry rose to -21 points from -24 points, and in services to -7 from -9. The indicator for consumers increased to -18 from -19.
The mood remained stable in the retail sector at -15.
The Commission survey also showed that inflation expectations 12 months ahead among households stabilised at -14 points after hitting an all-time low of -16 in August.
Among manufacturers, selling-price expectations edged up to -8 from -9 in September.
The European Central Bank keenly watches inflation expectations in the economy as it wants to anchor them at its price stability target of just below 2 percent.
Economists generally expect the bank to keep interest rates unchanged at the current record low of 1 percent well into 2010.
The survey also showed that capacity utilisation in industry rebounded from a record low of 69.9 percent in the third quarter to 70.7 percent in the fourth. (Reporting by Jan Strupczewski, editing by Dale Hudson)