BERLIN (Reuters) -The Sentix survey of investor sentiment found evidence of an upturn in Germany and in the euro zone in June, with the overall index for Germany hitting its highest level since March 2022 and the euro area index at its highest level in a year.
The Sentix index for the euro zone rose to 0.2 in June from -8.1 in May, beating the forecast for a reading of -6.0.
While the sentiment index for Germany was still clearly in negative territory at -5.9, optimism at a new conservative-led government taking office, a belief in the possibility of a ceasefire in Ukraine and the fading of the initial shock at U.S. tariffs policy were all helping drive an improvement.
The current assessment of the German economy among the 1,055 investors participating in the survey improved for the fourth consecutive month, even if it too remained in negative territory at -26.8.
"In recent years, the stagnation of the German economy has repeatedly acted as a brake on the European economy," the survey company wrote. "Now the Sentix economic indices in the eurozone are benefiting from the catch-up movement that Germany is sending out."
Expectations for the eurozone climbed 10.5 points, to 14.3, making for a cumulative improvement over the past two months of 30.1 points.
"The June data ... indicates an upturn in the European economic region," Sentix wrote.
Sentix’s poll was conducted from June 5-7.