Despite a global economic slump, investor confidence in June rose to its highest level of the year.

The State Street Global Investor Confidence Index, which measures risk appetite and investor confidence by measuring investors' buying and selling patterns each month, rose seven points from a month earlier to reach 93.5.

“It remains to be seen whether the slow pace of decision-making and reform in Europe will render this a temporary blip, or a more important turning point,” said Harvard University professor Kenneth Froot, who developed the index.

“At 93.5, the Global ICI remains well below the neutral level of 100, so it cannot be said that investors have become bullish. However, it is fair to say that they have tempered their bearishness a little,'' Froot said.

According to June’s reading, European and North American investors expressed the same level of improving confidence in the market. European investors also exhibited a higher risk appetite, with the region’s score checking in 2.5 points above the neutral 100 benchmark.

According to Paul O'Connell of State Street Associates, who also developed helped develop the index, the buying of U.S., U.K. and Asian equities by European investors may say more about their Eurozone concerns than their expectations for high returns in those markets.

The risk appetite among North American investors increased 5.7 points in the past month to 93.5, surpassing Asian investors’ risk appetite of 89.4, which only increased by one point from May’s reading.