The latest Sentix investor sentiment survey reveals a significant improvement in confidence across Germany and the euro zone in June. The overall index for Germany reached its highest point since March 2022, while the euro area index hit its highest level in a year.
The Sentix index for the euro zone climbed sharply to 0.2 in June, up from -8.1 in May. This result surpassed analysts’ expectations, which predicted a reading of -6.0.
Although Germany’s sentiment index remained negative at -5.9, it showed clear signs of improvement. Factors contributing to this optimism include the formation of a new conservative-led government, hopes for a ceasefire in Ukraine, and reduced concerns over U.S. tariff policies.
The current economic assessment in Germany improved for the fourth month in a row, though it stayed negative at -26.8.
Sentix noted that Germany’s economic stagnation had long held back the wider European economy. Now, Germany’s improving outlook is helping to boost the euro zone’s economic sentiment.
Expectations for the euro zone increased by 10.5 points to 14.3 in June, marking a total rise of 30.1 points over the past two months.
Sentix summarized the June results as a clear sign of an economic upturn in Europe. The survey was conducted from June 5 to June 7 and involved 1,055 investors.
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