Eurozone Sentix Investor Confidence rose sharply to 21.0 in May, up from 13.1, well above expectation of 14.0. That’s also the highest level since March 2018. Current situation index turned positive from -6.5 to 6.3, highest since May 2019. Expectations index rose from 34.8 to 36.8, hitting another record high.
Sentix said: ‘This is very unusual and underlines that the very expansive monetary and fiscal policy that has been in place for a year has not failed to have an effect on the real economy.” Though it also warned, “there are increasing signs that the economy is being overstimulated. This is evident in individual sectors that report shortages of materials. However, the strong global economy is having an even stronger impact on commodity prices and thus on inflation.”
Germany overall index rose from 20.0 to 26.1, highest since March 2018. Current situation index rose form 4.5 to 15.3, highest since May 2019. Expectations rose from 36.8 to 37.5, record high.
