Investor confidence in the euro area economy has risen sharply
Investor confidence in the euro area economy rose sharply in April, reaching its highest level in more than 2.5 years.
The fact that the lockdown in many countries of the monetary union did not have a significant impact on the overall economic recovery contributed to this. This was stated in the latest survey by the Sentix Institute.
The euro area investor confidence index reached 13.1 points in April, compared with 5 points in March. This is the highest value of the index since August 2018 and significantly higher than analysts expected. They expected the index to rise to 7.5 points.
The partial index of the current situation in the economy has risen sharply. It reached -6.5 points, which represents an increase of 12.8 points. It thus reached the level that prevailed in the period before the corona crisis. In addition, the sub-index of economic expectations rose to a historic high of 34.8 points. It reached 32.5 points in March.
According to the Sentix Institute, the economic recovery is mainly due to massive fiscal support. In addition, investors expect this support to continue to grow.
In addition, Sentix published data on the development of investor sentiment in the largest economy in the euro area, Germany. In this case, too, there has been a sharp improvement. The German investor confidence index for the economy rose from 11.9 points in March to 20 points. This is also the highest value since August 2018.
The partial index of the current situation jumped from -9.5 points in March to 4.5 points in April. The sub-index of economic expectations also increased, albeit at a slower pace. While it reached 35.8 points in March, it was 36.8 points in April.