The Sentix Investor Sentiment Survey revealed improving investor confidence in both Germany and the eurozone in June. The overall German sentiment index reached its highest point since March 2022. Meanwhile, the eurozone index climbed to its highest level in a year.
Eurozone Sentiment Surpasses Expectations
The Sentix index for the eurozone increased sharply to 0.2 in June, up from -8.1 in May. This rise exceeded forecasts, which had predicted a level of -6.0.
German Sentiment Improves Despite Remaining Negative
Though the German sentiment index stayed negative at -5.9, several factors contributed to the recovery. These include optimism about the new Conservative-led government, confidence in a possible ceasefire in Ukraine, and the easing of initial concerns about US tariffs.
The current economic assessment in Germany also improved for the fourth month in a row, though it remained negative at -26.8, based on feedback from 1,055 investors surveyed.
Germany’s Economic Momentum Benefits the Eurozone
Sentix noted that Germany’s economic stagnation has long been a challenge for Europe. However, the recent positive momentum in Germany is now helping boost the eurozone’s overall economic outlook.
Expectations for the eurozone economy rose by 10.5 points to 14.3 points, marking a total increase of 30.1 points over the past two months.
Outlook Suggests European Economy Is Improving
“The June data … suggest that the European economic region is improving,” Sentix commented, reflecting growing optimism among investors about the region’s prospects.
