Eurozone investor confidence improved for the seventh straight month in May to hit the highest level since February 2022 as both current situation and expectations rose in small but steady steps, a closely watched survey showed on Monday.

The investor confidence index posted -3.6 in May, the behavioral research institute Sentix reported. The score was forecast to improve moderately to -4.8 in May from -5.9 in the previous month.

The current situation index advanced to -14.3 in May from -16.3 in the previous month. This was the highest score since May 2023.

Likewise, the expectations indicator came in at a 27-month high of 7.8, up from 5.0 in April.

“The trend is therefore moving in the right direction, albeit in small steps, but continuously,” Sentix said.

However, the think tank cautioned that the weakness of the recovery should continue to be addressed as the improvement in expectations is very sluggish and is only having a very slow impact on the situation values.

For the European Central Bank, Sentix said the window for cutting key interest rates does not appear to be very large. While the economy strengthened, the inflation environment deteriorated, meaning that the bond markets are once again coming under greater pressure.

In the wake of global economic recovery, the German investor sentiment climbed in May. The economic expectations were no longer negative but situation remained weak, the survey showed.

The German investor confidence index rose to -17.5 in May from -20.5 in April.

The current situation indicator posted -33.5 compared to -36.0 in the previous month. At the same time, the expectations index rose to zero from -3.5 in April.

The weak economic momentum is by no means “self-sustaining”, the think tank said. “We can only hope that German policymakers do not crush this delicate plant of hope again,” added Sentix.