Royston Carr Asset Management - Investor sentiment improves while manufacturing in the euro zone struggles.
Online PR News – 08-May-2019 – Taipei, Taiwan – Analysts at Royston Carr Asset Management say investor confidence in the Euro zone increased for the third consecutive month last month, reaching its highest level since November last year. Royston Carr Asset Management analysts say the improvement can be attributed to more upbeat recent global economic data and the Brexit delay.
Analysts at Royston Carr Asset Management say the global economic situation has improved in recent months with fears of a recession decreasing in Europe.
Expectations for the euro zone economy also improved for the fourth consecutive month last month with a current situation index rising to 11.0 from 3.8.
Although investor sentiment is improving, Royston Carr Asset Management analysts say the euro zone economy is not yet out of the woods. Weakness in the manufacturing sector has seriously impacted the region's services- industry and economic growth in the euro zone was muted in the second quarter of this year.
Last month, IHS Markit's Euro Zone Composite Final Purchasing Managers' Index (PMI), which is deemed a reliable gauge of economic health, dropped to 51.5 from 51.6 the month before and, while this is still above the 50.0 mark that separates contraction from expansion, the manufacturing sector is still experiencing its most significant downturn in 6 years.
Royston Carr Asset Management analysts have warned that the downturn in manufacturing could spread to services and that this could negatively impact optimism and business expectations.