Investment sentiment in the eurozone worsened this month to the lowest level since May 2020, with talk of an “inevitable” recession in the eurozone.
The Sentix index for the euro zone fell to -26.4 points from -15.8 points in June, against estimates of -19.9 points.
“The energy crisis is leading to significant economic distortions,” says Sentix CEO Manfred Huebner.
“In every way, the dynamics are reminiscent of the 2008 crisis and what was then the collapse of the financial system is now the risk of a collapse of European energy supplies,” he added.
Germany, Europe’s largest economy, last month moved into the second phase of its natural gas emergency plan.
The Sentix index of current conditions in the eurozone fell to its lowest level since March 2021, and the expectations index fell to its lowest level since December 2008.