European Leading Indicators | Eurozone economic momentum is improving

Written By:
Judith Fischer, Knight Frank
1 minute to read

Here we look at the European leading indicators in the world of economics.

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Key insights:

Sentix back in positive territory for the first time since February 2022

The Sentix index reached 0.3 in June, the first positive reading since February 2022 when the Ukraine war started, pointing to improving economic sentiment across the Eurozone. The ECB revised its GDP forecasts for the Eurozone upwards and is now expecting 0.9% growth in 2024.

Private capital is an increased source of investment into European CRE in 2024

As predicted in our Active Capital research, private capital has been a key source of capital. Since Q1 2022, the share of private capital has increased and was recorded at 33% in 2024YTD, up from an average of 23% of total European CRE investment volumes between 2014-2021.

Systemic stress remains relatively low despite political uncertainty

European markets have shown some volatility due to political uncertainty from the European Parliament elections. The spread between German and French 10-year government bond yields widened after President Emmanuel Macron called a snap election raising investor concerns about public finances. However, systemic stress in the Eurozone remains at 0.073 relatively low in a historic context.

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