Euro zone investor morale falls to 3-month low on outlook angst

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FILE PHOTO: People eat outdoors in a cordoned-off area of a restaurant on the historic main market square of Soest, Germany, May 12, 2021, as the North-Rhine Westphalian town eased their lock-down policy during the spread of the COVID-19 pandemic. REUTERS/Wolfgang Rattay/File photo

BERLIN (Reuters) – Investor morale in the euro zone fell in August to a three-month low on a sharp drop in expectations due to concerns that new lockdown restrictions could loom in the autumn and beyond, a survey showed on Monday.

Sentix’s index for the euro zone fell to 22.2 points in August from 29.8 in July. A Reuters poll had pointed to an August reading of 29.0.

An expectations sub-index suffered its third decline in a row and fell to its lowest since May 2020. A current conditions index rose for the sixth month in a row, hitting its highest level since October 2018.

“The euro zone economy is booming, but the pace is slowing noticeably,” Sentix Managing Director Patrick Hussy said.

“What is true for the euro zone is also visible for the German economy … Fears are growing that new lockdowns could loom from autumn onwards with rising infection figures, and could once again weigh on the economy,” he added.

Sentix surveyed 1,070 investors from Aug. 5 to 7.

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