Euro area investor sentiment rose for a second month in a row to its highest level since June amid a strong improvement in both the assessment of the current situation and the outlook for the single currency bloc, survey data from the behavioral research institute Sentix showed Monday.
The investor confidence index climbed sharply to -21.0 from -30.9 in November, the think tank said. Economists had forecast a modest improvement in the reading to -27.6.
The survey was conducted from December 1 to 3 among 1,268 investors.
“Investors hope for an economic turnaround,” Sentix Managing Director Manfred Hubner said.
They are spreading hope that thanks to mild winter weather, sufficient gas in storage and a possible peak in inflation data, the economic downturn has also passed its zenith, Sentix said.
That said, Sentix cautioned that this correction in assessments should not be misinterpreted as a general trend reversal.
“The dangers of recession have by no means been averted,” the institute added.
The expectations index of the survey surged to -22.0 from -32.3, marking the highest reading since March.
The current assessment measure rose to -20.0 from -29.5.
The survey for Germany also revealed decreasing pessimism among investors. The economic expectations measure for the country climbed to -22.3, which was the best reading since March.