Euro zone investor confidence drops unexpectedly in March

Euro zone investor confidence drops unexpectedly in March

Eurozone investor confidence unexpectedly fell in March for the first time since October, influenced by a decline in expectations as the spring economic recovery risks being disrupted, a report showed. survey this Monday (6).

The Sentix index for the euro zone fell to -11.1 points for March from -8.0 in February. Analysts polled by Reuters had expected the index to rise to -6.3 in March.

While a current situation index rose for a fifth consecutive month in March to -9.3 from -10.0 the previous month, the fact that it stayed in negative territory indicates that the economy is, at best, in stagnation phase, research has shown.

An expectations index, on the other hand, plummeted after months of gradual improvement from double-digit lows not seen in a year, falling to -13.0 in March from -6.0 in February.

“This phase of stagnation could soon turn into new fears of recession if negative economic expectations materialize,” Sentix managing director Manfred Huebner said in a statement.

“Money supply growth remains weak and, along with interest rate hikes, should be a serious burden on the economy later this year,” he added.

The survey of 1,309 investors was conducted between March 2 and March 4, Sentix said.

Source: CNN Brasil