Eurozone investor confidence
Eurozone (FEZ) (VGK) investor confidence improved strongly in March 2017. The Sentix investor confidence index stood at 20.7 in the month, compared to 17.4 in February, beating the market’s expectation of 18.5.
The Sentix investor confidence index is a leading European economic indicator. Its data were released on March 6, 2017.
Investor confidence index
The Sentix investor confidence index is based on the results of surveys of ~2,800 analysts and investors. It reflects investors’ sentiments about business conditions. A strong performance by the index is a good sign for the Eurozone’s (EZU) (HEDJ) (IEV) economy.
Strong growth in the March investor confidence report signals that investor confidence has improved in the month compared to February. However, the Eurozone’s manufacturing and services PMI also showed improvement in February, meaning that the region’s overall business climate is positive.
Europe’s economy has faced various challenges in recent years. Low economic growth and deflation have been major concerns for the economy, but now the United Kingdom’s (EWU) exit from the European Union and the uncertainty surrounding various elections in the Eurozone are major economic concerns.
In July 2016, the index touched a record low of 1.7 after the announcement of the Brexit referendum’s results. Now, the business climate is improving gradually as inflation and economic growth improve slowly.
In the next part of this series, we’ll analyze the performance of the US consumer sentiment index in March 2017.