Italian manufacturing-sentiment index jumped to 88.9 in December, up from 88.5 in the previous month. At the same time, sentiment in building, services and retailing weakened to 71.9 from previous month's 73.4, while a measure for retailers and the overall economic sentiment dropped to 77.8 and 75.4, respectively.
French gross domestic product rose 0.1% in the third quarter, compared to a 0.2% growth estimated on Nov.15. Europe's second largest economy may slip into recession in the last quarter of 2012. At the same time, imports dropped by 0.5%, while exports accelerated slightly by 0.6%.
The Italian caretaker Prime Minister, Mario Monti, has promised to cut labour taxes in an interview seen as the launch of his election campaign.
President Anibal Cavaco Silva called for urgent action to halt the "recessionary spiral", warning Europe's leaders that the current course had become "socially unsustainable".
Institute of Directors survey finds number who see high risk of fresh recession has halved to one-in-six over past year.