German effect on Eurozone investor confidence decline
According to the statement made by Sentix, which conducts market research and is headquartered in Frankfurt, the Eurozone General Investor Confidence Index, which was minus 13.1 points in May, fell by 3.9 points to minus 17 points this month. The expectation was for the index to drop to 15.1 points.
The Expectations Index, which measures the expectations of investors for the next 6 months, also decreased from minus 9 points to minus 18.3 points.
In Germany, whose economy is based on exports, the General Investor Confidence Index fell by 6.6 points to minus 21.1 in June, the lowest level since November 2022.
“The Most Troubled Child in Germany”
“The biggest problem child in the Eurozone remains Germany, where Sentix investor confidence has fallen sharply,” Sentix Managing Director Manfred Hübner said.
Stating that instead of the expected recovery in the spring, there was a stagnation in the German economy, Hübner said, “First of all, economic indicators are falling. This is also felt by the rest of the Eurozone. “With the largest economy on such a difficult path, it should come as no surprise that investors are increasingly trending negatively for the rest of the Eurozone.”
The German economy had technically entered recession, shrinking by 0.3 percent in the first quarter of this year due to the impact of unusually high inflation and rising interest rates on consumer spending.
The economy contracted 0.5 percent in the last quarter of last year.
Although the bottlenecks that emerged during the Kovid-19 epidemic eased, the country’s economy is adversely affected by the stagnation in demand as a result of the rise in interest rates, the decrease in confidence in the economy and the decrease in the purchasing power of consumers in an unusually high inflation environment.
The German government expects 0.4 percent growth in the economy this year. Leading German economic institutes predict the country’s economy to grow by 0.3 percent this year.
The investor confidence survey was conducted on 1-3 June with the participation of 1197 investors.
