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Eurozone Sentix index edges up in May, expectations subdued
[BERLIN] Sentiment in the eurozone improved marginally in May, a survey showed on Monday, but expectations remained subdued suggesting stimulus from the European Central Bank is failing to offset worries about global growth.
The Frankfurt-based Sentix research group's index, tracking morale among investors and analysts in the eurozone, rose to 6.2 from 5.7 in April. Analysts polled by Reuters has expected a reading of 6.1.
"Although the eurozone remains in the range of a moderate upturn, the manner of the development indicates a burden from global economic development," Sentix said in a statement.
"Despite the ample injection of liquidity and negative interest rate, a self-supporting upturn in the eurozone is not happening," Sentix said.
The European Central Bank surprised many in March with a volley of interest rate cuts, additional monthly bond purchases and more cheap loans for banks designed as an incentive for them to lend more but left policy unchanged in April.
Sub-indices showed investors viewed the euro zone's current conditions rising to 7.0 from 6.0 in March. Expectations remained stable at 5.5.
An index tracking Germany showed sentiment in Europe's largest economy rose to its highest level this year, with investors' perceptions of current conditions rising while expectations inched up.
The survey of 972 investors was conducted between May 5 and May 7.