BERLIN, Oct 7 Reuters Investor morale in the euro zone unexpectedly rose in October after three consecutive months of decline, boosted by rising expectations even as dissatisfaction with the current situation hit a new low this year, a survey showed on Monday.

The Sentix index for the euro zone rose to 13.8 in October from 15.4 in September, beating the forecast from analysts polled by Reuters of a decline to 15.9 this month.

The survey of 1,150 investors from Oct. 35 showed that expectations were on the rise, at 3.8 points this month from 8.0 in September, with the European Central Bank39;s rate cuts, and stimulus recently provided in China cited for the increase.

The current situation score for the currency union, on the other hand, dropped for a fourth month in a row to its lowest level this year, to 23.3 in October from 22.5 last month.

The downward economic trend has been halted for the time being, Sentix said. The eurozone economy is thus starting its next attempt to find its way out of recessionstagnation.

Investor morale in Germany, Europe39;s largest economy, also rose this month for the first time since June, increasing to 31.5 from 34.7 in September, as expectations were up despite its current situation index remaining close to this year39;s lows.

Reporting by Miranda Murray, Editing by Friederike Heine

Source Reuters