BERLIN (Reuters) -Investor sentiment in the euro zone improved more than expected in July to hit its highest level in more than three years, a survey showed on Monday, as the bloc’s economic recovery broadened.
The Sentix index for the euro zone rose to 4.5 from 0.2 in June, beating the 1.1 forecast from analysts polled by Reuters and marking its third consecutive monthly increase.
The current situation sub-index improved notably but remained in negative territory, rising by 5.8 points to -7.3, while expectations climbed 2.8 points to 17.0, also marking a third straight rise.
The survey of investors, conducted between July 4-6, showed the recovery was broad-based across regions, with the United States economy making particularly strong gains after lagging in previous months.
Germany, Europe’s largest economy, also showed continued improvement with its overall index reaching -0.4, its highest since February 2022, as the current situation rose for a fifth straight month.
The survey indicated the European Central Bank’s room for further interest rate cuts may narrow as the economic upturn strengthens, though inflation pressures remain contained for now.
(Writing by Friederike Heine, Editing by Rachel More)
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