06.07.202013:58:00UTC+00Eurozone Sentix Investor Confidence Rises For Third Month

Eurozone investor confidence improved for the third straight month in July but outlook remained weak as the economy is expected to recover only slowly, survey results from the behavioral research firm Sentix showed Monday.

As member countries began easing the covid-19 containment measures, retail sales rebounded at a faster than expected pace in May, official data showed.

The investor confidence index improved to -18.2 in July from -24.8 in June. However, the score was weaker than economists' forecast of -10.9.

Assessment of current situation improved, while expectations weakened in July. The current situation index rose to -49.5 in July from -61.5 in June. Meanwhile, the expectations indicator fell to 19.5 from 21.8 a month ago.

In Germany, the investor sentiment index came in at -10.5 versus -17.2 in the previous month.

Retail trade volume advanced 17.8 percent on a monthly basis in May, in contrast to a 12.1 percent decline in April. This was also faster than the expected 15 percent increase.

Sales of food, drinks and tobacco gained moderately by 2.2 percent, while non-food product sales surged 34.5 percent in May. Sales of automotive fuel in specialized stores advanced 38.4 percent.

On a yearly basis, retail sales dropped at a slower pace of 5.1 percent, following a sharp 19.6 percent decrease in April. Sales were expected to fall 7.5 percent.

The bounce back in retail sales shows that retention of income throughout the lockdown has helped to kickstart the recovery in spending as businesses reopen, Bert Colijn, an ING economist said. An encouraging start, but the road ahead will be a lot bumpier.