THE OUTLOOK of European investors improved slightly in July, against expectations and reversing the trend of the previous two months, according to the Sentix economic index.
The measure came in at 10.1 in July, up from June’s 8.5, but still lower than scores recorded earlier in the year. The index still stands above zero, signalling a confident outlook.
The six-month expectation part of the index was particularly robust, increasing for the first time after four months of decline, up to 18.3 points. Investors had reportedly soured on the geopolitical risks stemming from conflict in Ukraine.
Broken down, the index for Germany is particularly strong at 29, with Sentix senior analyst Sebastian Wanke saying the economy “looks like a rock standing in the midst of a see of global economic tides”.
Sentix’s measure of global sentiment is now at the highest since January, with the current situation sub-index at its best in over three years.
“The Eurozone now seems to benefit from a stronger world economy, while it was itself a prominent motor of global growth until just a few months ago,” added Wanke.