Eurozone investor confidence fell unexpectedly in March for the first time since October, impacted by lower expectations as the spring economic recovery is likely to be disrupted, a report showed on Monday.
The Sentix index for the euro zone fell to -11.1 points in March from -8.0 in February. Analysts polled by Reuters had expected the index to rise to -6.3 in March.
While a current situation index rose for the fifth consecutive month in March to -9.3 from -10.0 the previous month, the fact that it remained in negative territory indicates that the economy is, at best, in stagnation phase, as research has shown.
An expectations index, however, plunged after months of gradual improvement from double-digit lows not seen in a year, falling to -13.0 in March from -6.0 in February.
“This stagnation could soon turn into fresh recession fears if negative economic expectations materialize,” Sentix Chief Executive Manfred Huebner said in a statement.
“Money supply growth remains weak and, together with rising interest rates, is expected to be a major burden on the economy later this year,” he added.
The survey of 1,309 investors was conducted between March 2 and 4, Sentix said.
Source: Terra
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