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Euro zone investor morale edges up, recession still likely – Sentix
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BERLIN (Reuters) – Investor morale in the euro zone was essentially unchanged in August from the previous month, with a slight rise too little to stave off fears of recession in the 19-country currency bloc, a survey showed on Monday.
BERLIN (Reuters) – Investor morale in the euro zone was essentially unchanged in August from the previous month, with a slight rise too little to stave off fears of recession in the 19-country currency bloc, a survey showed on Monday.
Sentix’s index for the euro zone inched up to -25.2 points from -26.4 in July. A Reuters poll had pointed to an August reading of -24.7.
“The economic situation in the euro zone remains difficult,” Sentix Managing Director Manfred Huebner said in a statement, adding the slight rise did not signal the all-clear.
“A recession in the euro zone is still very likely,” he said, citing weak consumer confidence, inflation and energy prices.
A Sentix index on the current situation in the euro zone was up very slightly at -16.3 in August after falling to -16.5 in the previous month, which was its lowest since March 2021. An expectations index rose to -33.8, still close to its July level that was the lowest since December 2008.
The situation in Germany, Europe’s biggest economy, looked even worse with the overall index dropping to -24.4 points, the lowest level since May 2020.
The poll of 1,262 investors was conducted between Aug. 4 and 6, said Sentix.
(Reporting by Madeline Chambers, Editing by Miranda Murray)
Investor morale refers to the overall sentiment and confidence of investors regarding the economic outlook and market conditions. It can influence investment decisions and market trends.
A recession is a significant decline in economic activity across the economy that lasts for an extended period, typically visible in GDP, income, employment, manufacturing, and retail sales.
The Sentix index is a measure of investor sentiment in the Eurozone, reflecting the expectations and current economic situation as perceived by investors.
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is typically measured by the Consumer Price Index (CPI).
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