Eurozone investor confidence improved to the highest level in more than three years in May suggesting that the recession caused by the coronavirus has been overcome, survey results from Sentix showed on Monday.

The investor confidence index rose notably to 21.0 in May from 13.1 in April. The score was the highest since March 2018. The reading was forecast to climb moderately to 14.0.

Current assessment as well as expectations strengthened in May. The current situation index came in at 6.3, the highest since May 2019, versus -6.5 in the previous month.

At the same time, the expectations index hit an all-time high of 36.8 in May, up from 34.8 a month ago.

This is very unusual and underlines that the very expansive monetary and fiscal policy that has been in place for a year has not failed to have an effect on the real economy, Sentix said.

However, there are increasing signs that the euro area economy is being overstimulated, the think tank noted.

The survey showed that the German economy is proving to be extraordinarily robust despite the ongoing lockdown policy.

The overall confidence index climbed for the third month in a row to 26.1, the highest since March 2018, from 20.0 in the previous month.

The current conditions index came in at a two-year high of 15.3 versus 4.5 in April. The economic expectations also rose again slightly, reaching an all-time high of +37.5 points.

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