Expectations have fallen by 3.2 points to -37, the worst result observed by Sentix since December 2008
The confidence of investors in the euro zone has fallen in September to its worst level since May 2020, shortly after the global pandemic of COVID-19 began, according to the index prepared by the German agency Sentix , which stood at -31.8 points, from -25.2 integers the previous month.
Flags of the European Union
“General conditions in the global economy continued to deteriorate in early September. Although in Europe the signs have been pointing to a sizeable recession for some time, there are now signs of a similar development globally,” said Sentix managing partner Manfred Hübner.
In this way, investors’ assessment of the current situation has dropped by 10 points, from -16.3 points in August to -26.5 integers in September. This represents the worst reading of the data since February 2021.
The worst figure for the index has been recorded in investor expectations, which have fallen by 3.2 points, to stand at -37 integers. This marks the worst level observed by Sentix since December 2008.
Sentix believes that the future crisis could be worse than the dotcom crisis, the euro crisis or the COVID-19 crisis. This is because, although the impact of the pandemic was greater, central banks responded to it with huge stimulus programs, something that is not going to happen in the short term since the monetary cycle is contracting.