Economic situation in the euro zone stabilized significantly in May - Sentix

According to the report from Sentix research group, in May, the economic situation continued to improve globally, but also in Europe. Fears of a recession are thus receding into the background, which is reflected in the improved situation values in all the regions considered.

The sentix economic index for the Euro-Zone surprises with a significant rise to 5.3 points in May. This is the third consecutive increase and the highest level since November 2018. Economists had expected an increase to 1.1 from -0.3 in April. Last improvement is supported by an increase in situation values, which rose from 3.8 to 11.0 points. The danger of recession is thus averted, even though the expected values are still just in the negative range. However, for the fourth time in a row expectations have improved to their highest level since March 2018.

The German economy also showed a strong improvement in May with a total index of 7.9. Apparently, the spark from the Chinese economy, which has recovered significantly since the start of the year, is increasingly jumping over to the export-dependent German economy. The assessment of the situation rises by almost eight points to 18.3 points. Expectations improve for the fourth time in a row to the highest level in February 2018.