Investor confidence in the euro area slid in September compared to the previous month, Sentix said in its latest report on Monday. The overall index dropped to a negative 21.5 from a negative 18.9 in August, lower than expected. The current situation index was at its lowest point since November 2022 at a negative 22 in September, compared to a negative 20.5 in August, while the expectations index slumped to a negative 21 from a negative 17.3 in August.
"The German economy, by far (still) the largest economy in the eurozone, is burdening the entire currency zone with a deep recession," the report said. "The dynamics of the economy would actually justify a looser monetary policy, but in Germany, of all places, inflation is proving to be particularly stubborn. Nevertheless... professional investors see an end to the upward trend in prices and thus the opportunity for the ECB to soon issue further interest rate hikes."