Investor morale in the euro zone fell in October as easing expectations cast doubt on a possible economic upturn, according to a survey published on Monday.
Expectations take a hit
The Sentix index for the euro zone dropped to 2.7 points in October from 5.1 points in September, missing analysts' forecasts of 5.0 points. The fall comes after the index reached its highest reading in more than four years in September.
Sentix said that while investors' assessment of current conditions remained unchanged, the decline was driven by a "noticeable setback" to their expectations. The current-situation subindex held steady at minus 3.3 points in October, but economic expectations fell by a full five points on the month to 8.8 points.
Germany bucks the trend — for now
In Germany, the euro zone's largest economy, hopes of an emerging upturn remain intact, Sentix said — "however, here too we are seeing a dampening of expectations that should not be overlooked."
The headline Sentix index for Germany slipped to minus 3.6 points from minus 2.8 points, while German expectations fell to 8.0 points from 12.3 a month earlier. The current-situation subindex for Germany, by contrast, rose for the fourth consecutive time to its highest level since May 2023, reaching minus 14.5 points.
The survey polled 1,030 investors, including 218 institutional investors, between October 1 and October 3.
Sources:
Reuters: Euro zone investor morale falls in October, Sentix survey shows
Expectations take a hit
The Sentix index for the euro zone dropped to 2.7 points in October from 5.1 points in September, missing analysts' forecasts of 5.0 points. The fall comes after the index reached its highest reading in more than four years in September.
Sentix said that while investors' assessment of current conditions remained unchanged, the decline was driven by a "noticeable setback" to their expectations. The current-situation subindex held steady at minus 3.3 points in October, but economic expectations fell by a full five points on the month to 8.8 points.
Germany bucks the trend — for now
In Germany, the euro zone's largest economy, hopes of an emerging upturn remain intact, Sentix said — "however, here too we are seeing a dampening of expectations that should not be overlooked."
The headline Sentix index for Germany slipped to minus 3.6 points from minus 2.8 points, while German expectations fell to 8.0 points from 12.3 a month earlier. The current-situation subindex for Germany, by contrast, rose for the fourth consecutive time to its highest level since May 2023, reaching minus 14.5 points.
The survey polled 1,030 investors, including 218 institutional investors, between October 1 and October 3.
Sources:
Reuters: Euro zone investor morale falls in October, Sentix survey shows
