The European Commission said its euro zone economic sentiment indicator for July jumped unexpectedly to 107.7 -- a record high since early 2001 -- from a downwards revised 107.1 in June. Economists polled by AFX News had forecast a slight fall to 107.0. The earlier level for June was 107.2. The industrial confidence component of the indicator rose in July to 4 from 3 in June, while consumer confidence was unchanged at minus 9. Economists had forecast 2 for the industrial confidence component of the indicator and minus 8 for consumer confidence. Confidence in the service sector was flat at 19, while retail posted a decline to minus 1 from 2. In contrast to the economic sentiment indicator, the commission's euro zone business climate indicator fell to 1.37 in July from an upwards revised 1.43 in June. The earlier level for June was 1.41. The commission said that despite the decline the indicator remains very strong. "The high level of the indicator together with the rebound in industrial production registered in May suggests that industrial production growth has accelerated in the second quarter of 2006 and should remain buoyant in the third quarter," it said