Eurozone economic expectations high four-month high

(Sharecast News) - Investor sentiment across the eurozone improved to a four-month high this month, but still came in shy of market estimates. The ZEW economic expectations index, which surveys institutional investors and analysts, inched 0.8 percentage points higher to 36.1% for July.

This was up from the third straight increase following a temporary dip below the zero mark in April, but below the consensus forecast of 37.8%.

Some 44% of investors said they expected the single-currency region's economy to improve, up 1.2pp over the month, while 48.1% predicted no change (-1.6pp) and 7.9% forecast a deterioration (+0.4pp).

The current economic situation index rose 6.5pp over the month but still remained negative at -24.2.

Meanwhile, the net balance of those expecting changes in inflation increased 8.9pp to -5.8%, meaning that more investors still expect inflation to fall (22.2%) than those who predict an increase (16.4%).