BERLIN- Investor morale in the euro zone improved for a third month running in July but a dip in expectations suggests the recovery from the impact of the coronavirus pandemic could soon peter out, a survey showed on Monday.
Sentix’s index for the euro zone rose to -18.2 from -24.8 in June. That compared with the Reuters consensus forecast for a reading of -10.9.
The current situation index rose for a second month in a row, to -49.5 from -61.5 in June. However, the expectations index for the bloc dipped to 19.5 from 21.8.
“There is a danger that the ‘upswing’ could run out of steam as early as the summer,” said Sentix managing director Manfred Huebner.
Investors said they expected that only around 60 percent of coronavirus-related economic losses would be recovered within a year in the euro zone.
In Germany, investors expect only around 65 percent to be made up within a year despite the government’s economic stimulus package, with the expectations index also dipping slightly in Europe’s largest economy.
Sentix surveyed 1,109 investors between July 2 and July 4.
The French economy is pulling out of the slump induced by the coronavirus outbreak at least as fast as expected a month ago, and maybe even a little faster, Bank of France Governor Francois Villeroy de Galhau said.
The central bank estimated last month that the euro zone’s second-biggest economy would be operating 12 percent below normal levels by the end of June, up from a 32 percent reduction at the start of France’s coronavirus lockdown in late March. — Reuters
