Eurozone investor confidence recovery comes to an end

While the investor confidence index in the Eurozone fell more than expected in July, the 8 consecutive months of rise in the index came to an end.

Sentix, which conducts market research and is headquartered in Frankfurt, announced the Eurozone General Investor Confidence Index data for July, which was conducted with the participation of 1140 investors.

Accordingly, the Eurozone General Investor Confidence Index, which was 0.3 in June, decreased by 7.6 points to minus 7.3 points this month.

Thus, the recovery in the index since October 2023 came to an end.

The expectation for the index was that it would remain stable in July.

The Expectations Index, which measures investors’ expectations for the next 6 months, also fell from 10 points to 1.5 points, a decline that “worries forecasters”.

The Current Situation Index also fell from minus 9 points to minus 15.8 points.

“The recent recovery of the European economy came to an abrupt end,” Sentix said in its statement, adding, “In particular, the 8.5-point drop in expectations is likely to worry forecasters with the prediction that the already difficult economic situation will worsen over the next 6 months.”

Investors are concerned about the uncertainty surrounding the French elections, the upcoming German state elections and the US presidential elections later this year, the statement said: “The health of the incumbent US president and the unanswered question of who will run against former president Donald Trump in the race for the White House are increasingly raising concerns. This uncertainty creates a kind of vacuum, especially as the slowdown in the US economy intensifies and begins to spread to other economies around the world.”

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