In October, Sentix’s index for the euro zone dropped from -31.8 points in September to -38.3 points.
Berlin (Reuters): A survey released Monday showed that investor confidence in the 19-country euro zone fell for the third month in a row in October, reaching its lowest level since May 2020. This is a sign that the 19-country currency bloc is in a deep recession.
The Sentix index for the euro zone dropped to -38.3 points in October from -31.8 points in September. This was lower than what analysts polled by Reuters were expecting, which was a reading of -34.7.
The expectations index also went down, from -37.0 to -41.0. This is the lowest it has been since December 2008, when the financial crisis was at its worst after Lehman Brothers went bankrupt.
The index for the current situation in the euro zone also went down. It went from -26.5 in September to -35.5 in October, which is the lowest it has been since August 2020.
Related: Futures on European equities are rising; Eurozone CPI data is in the spotlight.
Manfred Huebner, the managing director of Sentix, said in a statement that the attack on the Nordstream pipelines hasn’t made the gas and energy situation in the winter any less uncertain.
“Along with worries about the economy, there is now a growing chance that the military conflict in Ukraine will get worse. “There isn’t much hope for the world as a whole.”
He said that central bankers and governments couldn’t do the same thing now as they did when the coronavirus pandemic caused the economy to crash in 2020. This is because inflation is rising so fast.
Sentix said that the poll of 1,331 investors was done between October 6 and October 8.
