Euro Zone Investor Morale Declines

FRANKFURT (Reuters) – Investor morale in the euro zone fell in December to its lowest level in over a year, as Germany's economic outlook continues to weigh on the region.

The Sentix index for the euro zone dropped to -17.5 in December from -12.8 in November, marking the lowest level since November 2023 and exceeding the -13.5 forecast by analysts surveyed by Reuters.

> "Following the announcement of new elections to the German Bundestag, there is no mood of optimism," the survey noted, stating that the recession remains a persistent concern in Europe's largest economy.

The survey, conducted with 1,148 investors from December 5 to December 7, also indicated expectations declined to -5.8 in December, down from -3.8 in the previous month.

Additionally, the current situation score for the euro zone fell to its lowest in more than two years, recorded at -28.5 in December from -21.5 in November.

Germany's investor morale also dropped to -33.2 in December, compared to -29.8 in November, reflecting a continued downturn in confidence.