Investor confidence in the euro area economy improved unexpectedly in August. It had been declining for three consecutive months. This is according to a report by the research company Sentix. Analysts had expected a fourth consecutive decline in the index. But according to Sentix, there are no signs that the turnaround will be sustained.
The investor confidence index increased by 3.6 points to minus 18.9 points in August. Analysts in a Reuters poll had estimated the index value would fall to minus 24.3 points from July’s minus 22.5 points.
The polled financial market experts had a better assessment not only of the overall index but also of future developments. However, the assessment of the current situation did not change in August compared to the previous month.
A possible reason for growth
Sentix explains the rise in the index by weaker consumer price growth. According to the surveyed financial market experts, the topic of inflation is losing “some of its explosiveness”.
However, Sentix experts point to weak economic developments in Germany, where investor sentiment has fallen to its lowest since October 2022. “The eurozone’s largest economy is developing into the eurozone’s sick man and poses a significant drag on the region,” the company said.
“The eurozone economy remains in recession mode. So we cannot take any joy from this development,” said Sentix CEO Patrick Hussy on developments across the eurozone.
Source: ČTK
