The Sentix Investor Confidence index, a survey of 1,600 financial analysts and institutional investors, fell to 8.5 this month, the lowest level since December. The decline represented a loss of 4.3 points from the May figure.
Despite two months of decline, the index is still sitting solidly in positive territory. The measure was negative for two years between 2011 and 2013, but has now been above zero for 10 months.
The reading nevertheless fell short of analyst expectations, with a 0.2 point rise to 13 predicted for June.
Portugal also missed forecasts with a disappointing 0.6 per cent contraction in GDP in the first quarter. The economy has still expanded by 1.3 per cent in comparison to the same period last year.
Despite the drop, Berenberg’s Christian Schulz argued that GDP should rise again in the second quarter, as temporary factors abate.