Eurozone investor confidence deteriorated further in October on concerns over the energy supply in winter, in addition to the economic worries and a possible escalation of the military conflict in Ukraine, survey results from the behavioral research institute Sentix showed.
The Sentix investor sentiment index fell to -38.3 in October from -31.8 in September. This was the lowest level since May 2020. The reading was also weaker than economists' forecast of -34.7.
The current situation index came in at -35.5, the worst since August 2020, down from -26.5 a month ago.
The situation scores clearly signify that the economy is in recession, Sentix said.
The monetary policy is on a restrictive course in order to at least not inflame the considerable inflation any further. However, the measures taken so far are unlikely to be sufficient to dampen either inflation or the downturn.
Although governments took measures to curb the harmful effects of high energy prices, the supply problems in the energy market are not being addressed, said Sentix.
At -41.0, the expectations index reached its lowest level since December 2008. The reading fell from -37.0 in September.
In Germany, investor confidence fell for the fourth time in a row to its lowest level since March 2009. The economic confidence index slid to -37.4 in October from -29.9 in September.
The think tank said, "The former economic powerhouse is sinking deeper and deeper into the maelstrom of the energy-policy ghost train that the country has gotten itself into."
At -33.5 points, the situation has dropped by 10 points compared to September. At the same time, the expectations index declined to an all-time low of -41.3 from -36.0.
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