European Sentix Investor Confidence Drops Less Than Forecast

Investor confidence in the euro area fell less than economists forecast in August after the European Central Bank said it may take new measures to tame the region’s debt crisis.

Germany’s Sentix research institute said its index measuring sentiment in the euro-area economy fell to minus 30.3 from minus 29.6 in July. Economists forecast a decline to minus 31, the median of seven estimates in a Bloomberg News survey shows. Sentix said a gauge of expectations rose to minus 23.3 from minus 24, while a measure of current conditions dropped to minus 37 from minus 35.

ECB President Mario Draghi on Aug. 2 said the central bank may start buying government bonds in tandem with Europe’s bailout fund to reduce yields in countries such as Italy and Spain. That followed his pledge a week earlier to do “whatever it takes to preserve the euro.”

Draghi’s remarks prompted the improvement in the gauge of expectations, Sentix said. It said 856 investors participated in the survey, which was conducted between Aug. 2 and Aug. 4. The results are never revised.

To contact the reporter on this story: Gabi Thesing in London at gthesing@bloomberg.net

To contact the editor responsible for this story: Craig Stirling at cstirling1@bloomberg.net