Euro zone investor morale turns positive in August, Sentix survey shows

Investor confidence in the euro zone rebounded in August, according to a survey from research firm Sentix. The Sentix index for the region surged to 0.9 points from -3.1 in July, surpassing forecasted expectations of -0.5. This marks the index's fourth consecutive monthly increase, reaching its highest level since February 2026.

The rise in investor sentiment was primarily attributed to a sharp improvement in current economic conditions, alongside continued confidence in the economic recovery. The "current situation" subindex climbed to -8.0 points from -14.8 in July, while the expectations gauge improved to 10.3 points from 9.3. While some confidence was maintained, high energy costs and subdued order books posed challenges to the outlook.

In Germany, the survey's headline index reached -11.9 points, marking the third consecutive monthly rise and the highest reading since February. Sentix expects further economic stabilization for Germany, driven by robust economic data and a 0.2% growth in the second quarter, which prevented another recession. The survey polled 1,097 investors, including 213 institutional investors, between August 6 and August 8.