Concerns about an all-out trade war between the European Union and the United States are subsiding and investor morale in the euro zone is improving – better than expected.

Sentix’s index for the euro zone rose to 14.7 from 12.1 in July. The Reuters consensus forecast was for a rise to 13.5.

According to Sentix, a sub-index measuring future expectations improved but remained in negative territory, suggesting investors consider the euro zone economy to be in a cooling phase.

“But investors clearly see lower dangers from an escalation of the trade dispute initiated by US President [Donald] Trump,” Sentix said in a research note. It surveyed 923 investors between August 2 and 4.

As reported by the Reuters news agency, Trump agreed last month to refrain from imposing tariffs on cars imported from the European Union while the two sides negotiate to cut other trade barriers.

The decision after talks between Trump and European Commission President Jean-Claude Juncker eased fears of a transatlantic trade war.