Investor confidence in the Eurozone surged in June, with ZEW Economic Sentiment readings for both Germany and the wider region easily beating expectations.
Germany’s headline sentiment index jumped from 25.2 to 47.5, well above the expected 34.5, while the current situation gauge improved from -82 to -72. Eurozone-wide, sentiment rose from 11.6 to 35.3, and the current conditions index climbed 11.7 points to -30.7.
ZEW President Achim Wambach attributed the “tangible improvement” to growth in investment and consumer demand, adding that fiscal policy announcements from Germany’s new government appear to be supporting confidence.
The data suggests that the prolonged period of stagnation in Europe’s largest economy may be nearing an end. Combined with the ECB’s recent interest rate cuts, momentum may be building toward a long-awaited recovery.
