BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - Eurozone investor confidence deteriorated in December as the weakness of the German economy together with the political crisis in France dragged down the EU economy, results of the Sentix survey showed Monday.
The Sentix investor confidence index for Eurozone fell to -17.5 from -12.8 in November, the behavioral research think tank said. This was the lowest value since November 2023 and remained well below economists' forecast of -12.4.
The current situation as well as expectations values declined in December. Assessment of current situation reached its weakest level since November 2022.
At -28.5, the current situation index plummeted into the deep red from a three-month high of -21.5 in November. At the same time, the expectations index fell to -5.8 from -3.8 a month ago.
The survey indicates that a recession is increasingly becoming an issue of the currency bloc, especially as the six-month expectations provided no cause for hope.
Investors anticipate strong support from the European Central Bank to help the faltering economy. On other hand, the threat of inflation continues to be perceived as a burden.
The next few months could reveal a conflict of objectives for the central bank, which could be particularly difficult for the financial markets to digest, Sentix said.
The think tank said the German data severely disappointed in December. There was no mood of optimism after the announcement of new elections to the German Bundestag.
Germany's economic confidence index registered -33.2 in December compared to -29.8 in November.
The current conditions index plummeted further by 5.5 points to -50.8 in December, the lowest since June 2020. The economic expectations indicator slid to -13.5 from -12.8 a month ago.
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