Eurozone investor confidence improved for a second consecutive month in June, with Sentix Investor Confidence rising from -16.4 to -13.4, slightly above expectations of -13.8. The Current Situation Index climbed from -21.5 to -20.0, while the Expectations Index improved notably from -11.3 to -6.5, suggesting investors are becoming more optimistic about the economic outlook after the sharp deterioration seen earlier this year.
According to Sentix, the recovery follows the severe hit to sentiment in March and April caused by the Iran conflict and the resulting surge in oil prices. Concerns about a significant economic slowdown have eased as economic prospects in the US and Asia have improved, providing fresh support for global growth. The Eurozone has also benefited from the more favorable international backdrop, though the recovery remains less dynamic than in other major regions.
However, inflation remains a key concern. Sentix noted that higher energy prices continue to fuel worries about persistent price pressures despite a modest improvement in its inflation barometer from -43 to -38. Germany remains a particular weak spot, with sluggish domestic performance weighing on the broader Eurozone recovery. The survey reinforces expectations that the ECB will maintain a vigilant stance on inflation, with markets already anticipating a rate hike at this week’s policy meeting.
| Indicator | Previous | June | Expected |
|---|---|---|---|
| Sentix Investor Confidence | -16.4 | -13.4 | -13.8 |
| Current Situation Index | -21.5 | -20.0 | — |
| Expectations Index | -11.3 | -6.5 | — |
| Inflation Barometer | -43 | -38 | — |
