- August Sentix investor confidence 0.9 vs -0.5 expected
- Prior -3.1
Euro area investor sentiment continues to recover in August, with the index returning to positive territory for the first time since February.
That is helped by both an improvement in the current situation and expectations index, both of which have also risen for a fourth month in a row. The former is up sharply to -8.0 (previously -14.8) with the latter improving to 10.3 (previously 9.3), both also matching the highest since February this year.
The drive higher in sentiment is also helped by further stabilisation in Germany. Even though the current conditions index in Europe’s largest economy remains negative (-28.3), it still marks a notable improvement from the -39.8 estimate in July. Meanwhile, the expectations index there also improved to 6.0 from 3.5 in the previous month.
Sentix notes that “the severe confidence shock resulting from the US-Iran appears to have been at least partially absorbed”. However, warns that “high energy costs and a still subdued order book remain significant headwinds”.
This article was written by Justin Low at investinglive.com.