Eurozone investor spirit improved in July but the recovery could stall, Reuters reported referring to a survey.
Sentix Eurozone investor confidence index rose to minus 18.2 points from minus 24.8 in June, not reaching the consensus forecast of analysts polled by Reuters at minus 10.9.
The current situation index rose for the second month in a row, rising to minus 49.5 from minus 61.5 in June. However, the expectations index for the bloc fell 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 expect that only nearly 60% of coronavirus-related economic losses would be recovered within a year in the euro zone.
While German investors expect that only nearly 65% of losses will be recovered during the year, despite government economic incentives. The expectations index in Europe’s largest economy also slightly fell.
Sentix interviewed 1.109 investors between July 2-4.