Investors In The Eurozone Deteriorated For The Second Month In A Row

Investors In The Eurozone Deteriorated For The Second Month In A Row

Investors in the eurozone deteriorated in November and their confidence in the economy fell, for the second month in a row. This reflects the negative impact of the new coronavirus pandemic on the economic recovery process. This follows from the latest survey by the renowned Sentix Institute. According to the survey, the confidence index, which reflects the mood of investors in 19 monetary union countries, fell to -10 points in November from -8.3 points in October. However, analysts expected an even worse result, namely the index to fall to -15 points. The survey also showed that the so-called lockdown has so far had little effect on the assessment of the current situation from the perspective of investors. The relevant partial index decreased only slightly, to -32.3 from -32 points in the previous month. But its negative value, according to Sentix, means that the economy is in a state of contraction. The sub-index of euro area investor expectations also fell this month, to 15.3 points, its lowest value since May 2020, from 18.8 points in October. Sentix also released the results of a survey from Germany, which is the largest economy in the eurozone. They revealed that German investor confidence fell to 1.3 points in November from 1.4 points in October. Investors' expectations in Germany fell for the third month in a row, while the assessment of the current situation improved in November.