When economists get positive about Europe’s recovery, it is mostly related to their high expectations regarding the quantitative easing program of the European Central Bank and the recent drop in energy prices.

That is not ridiculous, because the program could give the number of loans in the eurozone a big boost and the lower energy prices should drive consumers to spend more on consumer products. These are exactly the two aspects that have not been performing up to par in the region these last few years.

But what about corporate spending?

Europe’s Recovery

The strong decline in earnings was an important factor in the 2011-2012 recession in the eurozone and we cannot speak of a full recovery as of yet. Earnings fell between the second quarter of 2011 and the first quarter of 2013 by 2.5%, while GDP shrank by 1.7%, according to Credit Suisse.

Although it sometimes looked like things were going better, there were only temporary revivals followed by more declines. Right now however, it does look like Europe is gaining momentum.

The most recent Executive Panel survey from Credit Suisse for example, in which 60 percent of surveyed executives expects corporate spending to improve in the coming 6 months. An acceleration of investments will likely be the result, Neville Hill from Credit Suisse concluded.

Ultimately, Credit Suisse expects the eurozone economy to grow by 1.5 percent this year, which is a nice improvement compared to the 0.4% drop of 2013. Improving growth in the eurozone makes that the future of some of the worst performing stocks since the financial crisis looks brighter. European banking stocks already rallied and as Hill wrote, the potential is on the upside now, not on the downside.