Eurozone economic sentiment rose more-than-expected in January to its highest level since the middle of 2015, driven by better assessments on the current situation and economic outlook, survey results from Sentix showed Monday.
The economic sentiment index for Eurozone climbed to 18.2 from 10 in December, well above the 12 reading economists had predicted. The latest score was the highest since August 2015.
The current situation index rose to 16.5 from 8.3, marking its highest level since July 2011. The expectations index increased to 20 from 11.8.
Investors were also upgraded their view on Germany, and the index climbed to 33.1 from 27.8. The current situation index rose to a 5-year high of 52.5. The expectations measure also increased to 15.3.
"The Eurozone's economic indices finally align with the already positive development of the indices of other world regions," the think tank said.
"The "Trump Effect" on the global economy, however, is not the trigger of the current economy recovery. Moreover, it is just an accelerator within an ongoing process."
Sentix expects more economic upside potential for Eastern Europe and Austria due to its strong ties with the east of Europe.
"The region benefits from repeated announcements by president-elect Trump to
establish a mutually beneficial relationship between the two countries," Sentix said. "Investors start to dream of an end of the US imposed sanctions on the Russian economy."
The US economy sustained its strong growth momentum in January and the economic sentiment index hit its second all-time high in a row. The current situation index rose to its highest level since May 2006, though expectations eased slightly.
Consequently, the Global Aggregate Index jumped to a 9-year high.
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