Eurozone investor sentiment declined for the third straight month to hit an eight-month low in July, suggesting that the region remained in a recessionary mode and the situation is more severe than the usual summer lull, survey results from the behavioural research institute Sentix showed on Monday.<\/p>\n
The Sentix economic index posted -22.5 in July, which was the lowest since November 2022, when euro area was facing acute energy crisis. The reading was forecast to fall to -17.9 from -17.0 in June. <\/p>\n
Both the current situation and expectation measures of the survey reached the lowest since November 2022. <\/p>\n
The current situation index declined to -20.5 in July from -15.8 in the previous month. The expectations index registered -24.5, down from -18.3 in June. <\/p>\n
The currency bloc remains in recession mode and there is nothing positive to report in terms of forward-looking expectations, Sentix said. Investors do not expect central banks to support the economy<\/span> with loose monetary policy, the think tank added.<\/p>\n
The situation in Germany remained particularly dramatic, Sentix said, adding that the finding of a representative survey that people consider their own government to be the “greatest risk” is unique and frightening.<\/p>\n
Germany’s investor sentiment index slid to -28.4 in July from -21.1 in the previous month. Situation as well as expectations values declined notably, with situation index hitting the lowest since October 2022.<\/p>\n
The International Monetary Fund has forecast the 20-nation euro region to grow just 0.8 percent in 2023 and 1.4 percent next year. Meanwhile, the German economy is projected to shrink 0.1 percent this year. <\/p>\n
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