Published by Global Banking & Finance Review®
Posted on January 6, 2025
2 min readLast updated: January 27, 2026
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Investor morale in the euro zone fell to its lowest in over a year, with Germany's economy dragging the region down. The Sentix index dropped to -17.7, indicating economic challenges ahead.
FRANKFURT (Reuters) - Investor morale in the euro zone fell in January to its lowest in more than a year, a survey showed on Monday, with Germany remaining a continued drag on the bloc.
The Sentix index for the euro zone dropped to -17.7 in January from -17.5 in December. That is the lowest level since November 2023, though it was not as bad as the -18.0 forecast by analysts polled by Reuters.
"In the euro zone, the economic engine is threatening to freeze up for the long-term," the survey said, adding that Germany's recessionary economy "is hanging on to the euro zone like a lead weight".
The survey of 1,121 investors from Jan. 2 to Jan. 4 showed expectations slightly improved to -5.0 in January from -5.8 points last month.
But that gain was outweighed by the worsening view of the current situation, which sagged to -29.5 in January from -28.5 in December. That is the lowest level since October 2022.
The survey also found that Germany - Europe's largest economy and one facing federal elections next month - appears to be in recession and is unlikely to emerge from it any time soon.
(Reporting by Tom Sims, editing by Rachel More)
The Sentix index for the euro zone dropped to -17.7 in January from -17.5 in December.
Germany's recessionary economy is described as hanging on to the euro zone like a lead weight, indicating it is a significant drag on the bloc.
Expectations slightly improved to -5.0 in January from -5.8 points last month, but this gain was outweighed by a worsening view of the current situation.
The investor morale in the euro zone is at its lowest level since November 2023.
The survey indicates that Germany appears to be in recession and is unlikely to emerge from it any time soon.
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