Euro zone investor morale falls in January to lowest in additional than a 12 months

FRANKFURT (Reuters) – Investor morale within the euro zone fell in January to its lowest in additional than a 12 months, a survey confirmed 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’s the lowest stage since November 2023, although it was not as dangerous because the -18.0 forecast by analysts polled by Reuters.

“Within the euro zone, the financial engine is threatening to freeze up for the long-term,” the survey stated, including that Germany’s recessionary economic system “is hanging on to the euro zone like a lead weight”.

The survey of 1,121 buyers from Jan. 2 to Jan. 4 confirmed expectations barely improved to -5.0 in January from -5.8 factors final month.

However that acquire was outweighed by the worsening view of the present state of affairs, which sagged to -29.5 in January from -28.5 in December. That’s the lowest stage since October 2022.

The survey additionally discovered that Germany – Europe’s largest economic system and one dealing with federal elections subsequent month – seems to be in recession and is unlikely to emerge from it any time quickly.