Jan. 9 (Bloomberg) -- European investor confidence rose from a 2 1/2 year low in January as expectations grew that the euro region will avoid a prolonged recession.
An index measuring sentiment in the 17-nation euro area increased to minus 21.1 from minus 24 in December, which was the lowest reading since July 2009, the Limburg, Germany-based Sentix research institute said in an e-mailed statement today. A gauge of expectations rose 7 points to minus 23.5, while an indicator for current conditions fell to minus 18.8 from minus 17.3 in December.
“The year has started with a glimmer of light,” Sentix said in the statement. “The improvement in expectations is necessary to avert a protracted recession in the euro area.”
Euro nations including Italy and Spain are winning a reprieve from record-high borrowing costs as investors give efforts to reduce debt the benefit of the doubt. At the same time, the European Commission cut its 2012 growth forecast by more than half to 0.5 percent in November, and last week Luxembourg Prime Minister Jean-Claude Juncker said the region is “on the brink of a recession of which one doesn’t yet know its scope.”
Sentix said 884 investors participated in its monthly survey, which was conducted Jan. 5-7. The results are never revised.
--Editor: Matthew Brockett
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