BERLIN, June 10 (Reuters) - Investor morale in the euro

zone rose for the eighth consecutive month in June, but economic

recovery in the bloc is proceeding with difficulty, a survey

showed on Monday.

Sentix's index for the euro zone rose to 0.3 points for June

from -3.6 in May. Analysts polled by Reuters had expected it to

rise to -1.8 this month.

Importantly, the index on expectations saw a rise,

increasing from 7.8 in May to 10.0 in June, "providing some

encouragement that the trend may continue in the coming weeks",

Sentix said.

"Germany's economy would have to send out a signal to

generate more momentum. However, this signal has yet to

materialize," it said.

The barometer plunged into negative territory in the wake of

Russia's invasion of Ukraine last February.

The sluggish improvement since then "is certainly one of the

main arguments for the ECB to be able to cut interest rates

further", Sentix said, adding that its inflation barometer also

indicates an unfavourable inflation environment.

Germany's economy, Europe's largest, saw some improvement in

June, with the index on the current situation rising to -26.3

from -33.5 in May.

"The stabilization of the German economy is only making

moderate progress," Sentix said.

The poll of 1,276 investors was conducted between June 6-8,

Sentix said.