WASHINGTON — Investor sentiment in the eurozone, or the European Union countries that use the euro as currency, is on the upswing even though their overall economies are struggling.
Reuters reported that investors were encouraged by the end of the currency bloc’s recession, which was buoyed by the German economy. This is a big improvement considering investor sentiment was at a low last month.
It is now a +6.5 points as measured by the sentiment survey, when it was -4.9 in August. This is the highest sentiment level since May 2011 and the first positive one since June 2011. Investors who were surveyed said that they were upbeat about their six-month plans and current business situation, which appeared to be on the upswing.
An increase in exports and spending moved the zone out of recession and could be a signal for an economic recovery.
But, individual countries in the bloc are struggling. For example, Spain’s economy continues to flounder and has an unbearable unemployment levels nearing 50% in some of its major demographics, which has led to a spike in crime. Germany is one of the only stable countries right now, but some question whether Germany can continue to do it alone.