BERLIN (Reuters – The euro zone’s investor morale rose higher than anticipated in June. This was the first rise since Russia invaded Ukraine. A Tuesday survey revealed that many businesses have yet to feel the impact of inflation and supply shortages.

Sentix’s euro zone index rose to -15.8 in June, from -22.6 points in May. This was the lowest figure since June 2020.

A Reuters poll pointed out a reading of -20.0 in June.

Manfred Huebner, Sentix’s Managing Director, stated in a statement that while the improvements in situation and expectations may seem impressive at first glance it is not likely to be a turning point.

Huebner stated that while consumers already feel the effects of rising prices, companies are able to pass these rising costs on to customers. He said many businesses have benefited from customers’ rush to purchase goods and services prior to price rises.

However, it appears that this stage is over. End consumers will need to make cuts at some point. Furthermore, monetary policies could be more restrictive in euro-zone countries starting July.

Current conditions improved to -7.3 in Juni from May’s -10.5, and expectations rose to 24.0 from May’s -34.0.

Sentix interviewed 1,225 investors from June 2 to June 4.