Bloc39;s retail sales rebounded only feebly in January
Construction still contracted, sector39;s PMI showed
Surprise fall in morale in March39;s Sentix index
Expect more ECB rate hikes after March, says Lane
Big nations39; inflation rose in Feb, data showed last week

FRANKFURT, March 6 Reuters The euro zone39;s economic recovery is tentative and fragile, several indicators suggested on Monday, adding to signs that even if a recession may have been avoided, no upturn is in sight.

Surging energy prices and borrowing costs have weighed on business morale, investment spending and consumer confidence in the bloc for months and, notwithstanding a dip in January, inflation remains stubbornly high while more interest rate hikes are on the horizon.

Some economic readings have been better than feared, particularly through the winter, but Monday39;s retail trade data, a key sentiment indicator, and construction figures tempered any nascent optimism.

Euro zone retail sales, a good proxy for consumer demand, rebounded much less than expected in January, challenging other data, including PMI surveys, which pointed to a steady recovery.

Retail sales rose 0.3 on the month, below the 1 rise forecast by economists, and were down 2.3 year on year.

That suggests a weak start to the year for the consumer amid stubbornly high prices, ING economist Bert Colijn said. While surveys about the first quarter have been relatively upbeat so far, these sales data don39;t give much evidence…