(Reuters) – Investor sentiment in the euro zone improved for the fifth consecutive month in March, reaching its highest level since April 2023, according to the Sentix index published on Monday, even as economists warned against a “persistent” recession in Germany.

The Sentix institute index for the euro zone, which remains in negative territory, went from -12.9 points in February to -10.5 points in March, against -11.0 expected by the Reuters consensus.

However, the survey indicates that Germany, the region’s largest economy, is a particular pocket of weakness, with investor sentiment falling.

“If the data is going in the right direction, we cannot talk about a classic spring revival for the eurozone,” Sentix said.

The institute stressed that German economic policy “prevents a full economic recovery in the heart of Europe.” The recession remains in place,” he said.

For the euro zone, the expectations index rose from -5.5 points in February to -2.3 points in March, a sixth consecutive month of increase and the highest value since February 2022.

The Eurozone Current Situation Index also increased from -20.0 points last month to -18.5 points in March, the fifth consecutive monthly increase.

The survey was carried out among 1,267 investors between February 29 and March 2.

(Reporting Tom Sims; Diana Mandiá, edited by Blanndine Hénault)

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