By Paul Hannon 

European consumers continued to grow more optimistic in January, ahead of key elections that could lead to major changes in economic policy.

The European Commission on Monday said consumer confidence across the 19 eurozone countries in January rose to -4.9--the highest level since April 2015--from -5.1 in December.

The continued pickup in consumer confidence suggests the eurozone's recovery could gain momentum in the early months of 2017.

Figures for growth in the final quarter of 2016 will be released Jan. 31 and most analysts expect the data to show a slight acceleration from the previous six months.

Consumer sentiment has been supported by a steady if slow decline in the unemployment rate, as the eurozone economy expands modestly. Morale may also have been boosted by the European Central Bank's announcement in December that it would extend its bond-buying stimulus program to the end of 2017.

"Consumers across the eurozone currently seem to be focusing on recent, largely decent economic news and improved job markets and for now at least, are brushing off political uncertainties," Howard Archer, an economist at IHS Global Insight, said.

The pickup in sentiment could help boost the eurozone's recovery, since upbeat consumers tend to spend more freely.

However, some economists worry consumption may be the economy's weak spot in 2017, if a rise in inflation, driven by higher energy prices, isn't matched by wage increases.

Consumers also face a great deal of uncertainty, with the Netherlands, France and Germany each holding elections in 2017. Victory for one, or a number of, nationalist parties could resurrect questions about the eurozone's survival, since these parties are hostile to the single currency and the wider European Union.

Opinion polls suggest nationalist victories are unlikely, but the Brexit vote in the U.K. and Donald Trump's triumph in the U.S. mean political uncertainty remains high.

Europe's leading anti-immigrant and antiestablishment politicians rallied in Germany's Rhineland on Saturday to launch an election year push they hope will topple the EU, displaying a new level of ambition and organization and casting Mr. Trump as their inspiration.

"Looking ahead, inflation is set to rise sharply, which will cut into real wage growth, while economic stability is endangered by forthcoming popular votes," Daniel Christen, an analyst at Capital Economics, said.

"We therefore expect confidence to weaken in the coming months."

Write to Paul Hannon at paul.hannon@wsj.com

(END) Dow Jones Newswires

January 23, 2017 11:26 ET (16:26 GMT)