Investor morale in the euro zone improved for the fifth consecutive month in March to its highest level since April 2023, a survey showed today, but economists warned of a "persistent" recession in Germany.
However, Sentix's index for the euro zone remained in negative territory.
It rose to -10.5 points in March from -12.9 in February, beating a reading of -11.0 estimated in a Reuters poll of analysts.
Sentix pointed to Germany - the region's largest economy - as a pocket of particular weakness, with a decline in sentiment.
"Although the data points in the right direction, there can be no talk of a classic spring revival" for the euro zone, Sentix said.
It pointed to German economic policy as "preventing a thorough economic recovery in the heartland of Europe. The recession remains in place," it said.
For the euro zone, the expectations index rose to -2.3 points from -5.5 in February, a sixth consecutive month of rises and the highest value since February 2022.
The index on the current situation in the euro zone also rose, increasing to -18.5 in March from -20 the previous month, the fifth monthly increase in a row.
The poll of 1,267 investors was conducted between February 29 and March 2.
