Berlin (Business Emerge), October 7: Investor sentiment across the euro zone showed an unexpected increase in October after a three-month decline, according to a recent survey. Although dissatisfaction with the current economic situation reached its lowest point this year, optimism about future prospects provided a much-needed boost to morale.
The Sentix index, which measures investor confidence in the euro zone, improved to -13.8 in October from -15.4 in September. This outcome exceeded analysts’ predictions, who had anticipated a decline to -15.9.
The survey, which gathered responses from 1,150 investors between October 3-5, revealed a rise in future expectations, climbing to -3.8 this month compared to -8.0 in September. Factors such as rate cuts by the European Central Bank and recent economic stimulus measures in China were cited as key reasons behind the increasing optimism.
However, the current economic assessment for the euro zone continued its downward trend for the fourth consecutive month, dropping to its lowest level this year. The index for the present situation slipped to -23.3 in October from -22.5 in the previous month.
Sentix noted, “The downward economic trajectory has been paused for now.” It further added that the euro zone economy appears to be making a renewed effort to move out of the current phase of stagnation or recession.
Germany, the largest economy in Europe, also experienced an increase in investor confidence this month for the first time since June. The index for Germany rose to -31.5 in October, up from -34.7 in September, reflecting better expectations even though the assessment of the current situation remained near yearly lows.