Euro zone investor morale improves in August but recovery sluggish – Sentix

(C) Reuters. A two Euro coin is pictured next to an English ten Pound note in an illustration

BERLIN (Reuters) – Investor morale in the euro zone rose for a fourth consecutive month in August but the low reading suggests that the coronavirus-hit economy is still in recession in the third quarter, a survey showed on Monday.

Sentix’s index for the euro zone improved to -13.4 from -18.2 in July. That was its highest reading since pre-lockdown times in February and compared with the Reuters consensus forecast for a reading of -15.1.

The current situation index rose to -41.3 from -49.5 in July, its highest reading since March.

“There is still no rejoicing in absolute terms,” said Sentix Managing Director Patrick Hussy. “The process of economic recovery is proving sluggish.”

The expectations index for the bloc was almost unchanged, dipping to 19.3 from 19.5 in the previous month.

“It is remarkable in this context that a second wave of corona infections does not leave a new fear reflex in the economic indicators,” Hussy said, after Germany has seen a rise in new coronavirus cases in recent weeks.

Sentiment in Germany picked up for a fourth straight month, with investors feeling more upbeat about both the current situation and the future. Sentix suggested this may be linked to a surge in industrial orders in June.

Sentix surveyed 1,078 investors from August 6 to 8.