Investor morale in the euro zone improved in August, ending three consecutive months of decline as inflation has cooled off. At the same time, there are no signs of a lasting turnaround in sentiment, a survey showed on Monday.
The poll of 1,202 investors was conducted between Aug. 3-5, according to Sentix. Sentix's index for the eurozone rose to -18.9 points in August from -22.5 in July, beating expectations of analysts polled by Reuters of a further drop, to a reading of -24.3.
According to Sentix managing director Patrick Hussy Germany has turned into "the sick man” of the eurozone with investor morale in Europe's largest economy dropping to its lowest level since October 2022.
The subindex for future expectations in the eurozone rose 7.3 points to -17.3, which is being attributed to a slowing in the expected rate of economic slump rather than positive sentiment.
The "more lenient view" of the next six months is because investors see the issue of inflation as losing some of its explosive power, said Hussy, though there are not yet signs that the situation will continue to head in the right direction.
"The economy in the eurozone remains in recession mode. There can therefore be no joy about this development," he said.