Eurozone Sentix Investor Confidence improved to -24.8 in June. That’s the second straight month of rebound, from April’s -42.9 then May’s -41.8. Current situation index rose from -73.0 to -61.5. Expectations index jumped from -3.0 to 21.8, turned positive, and hit the highest level since November 2017.
Sentix questioned: “But what do these numbers mean? Is there a “normal” upswing that will soon bring us back to a normal, good economic situation? To get a better understanding of these figures, we conducted a special survey among investors. We wanted to know how much of the economic slump caused by the Corona pandemic will be made up within a year. So where does the recovery go?!”
They then added: “The result is likely to disappoint optimists. For the eurozone, investors expect that within a year, just over 50% of the slump can be made up. This means that in a year’s time we would still be noticeably below the pre-crisis level. And this despite all the stimulus measures, the fiscal packages and monetary easing. An upswing has begun, but a real trend reversal is not yet assured.”
