2019.12.0910:35:00UTC+00Eurozone Investor Confidence Climbs For Second Month: Sentix

Eurozone's investor confidence improved for a second straight month to its highest level since May, and business expectations were the strongest in nearly two years, suggesting that recessions fears have receded, survey data from the behavioral research institute Sentix showed on Monday.

The Sentix indicator of business confidence rose by 5.2 points to 0.7 in December. Economists had expected the reading to worsen to -5.3 from -4.5. The latest reading was the highest since May 2019.

The expectations measure of the survey also rose for a second month, climbing to 2.5 from -3.5. That was the highest figure since March 2018.

The current situation measure also improved further to -1, its highest level since July.

The survey was conducted between December 5 and 7 among 1,131 investors, of whom 284 were institutions.

"The second improvement in a row may be taken as an indication that the spectre of recession has been dispelled in the Euro zone," Sentix said.

"More and more investors are convinced that the worst is over for the economy in the Euro zone and that impulses from the central bank and politicians will stimulate the economy in the coming months."

Investors are looking forward to increased government spending on investments after calls from the European Central Bank to boost fiscal support to the economy, the think tank said.

The investor confidence index for Germany rose to -1.4 from -6.5 in November. The latest reading was the highest since June. The expectations measure climbed to its highest level since February 2018.

"The Asia ex Japan region is developing into a special source of hope - especially for the German economy," Sentix noted.