Investor sentiment continued to deteriorate in the euro area

The low point was in April 2020

Sentix GmbH’s investor sentiment index fell to minus 38.3 points in October, the lowest since May 2020, instead of the expected minus 34.7 points from the previous month’s minus 31.8 points.

The lowest value of the index so far was minus 42.9 points reached in April 2020. The indicator turned positive at the beginning of 2021, and then took on a negative value again from March of this year.

Among the components of the aggregated index, the assessment of the current situation among financial experts decreased from minus 26.5 points in September to minus 35.5 points in October, and the evaluation of the prospects fell from minus 37.0 points to minus 41.0 points.

According to the experts involved in the survey, the uncertainty regarding the winter gas and energy situation has not eased due to the attack on the Nordstream pipelines. In addition to economic concerns, the likelihood of an escalation of the military conflict in Ukraine is also increasing. Experts see little reason for hope globally, only China’s situation is currently somewhat stabilised.

The Sentix investor sentiment index quantifies the subjective assessment of the six-month economic outlook of the euro area. The data is compiled from a survey of around 2,800 investors and analysts. A value above zero indicates optimism, a value below zero indicates pessimism.

Sentix/MTI