Eurozone Sentix Investor Confidence fell to its lowest level since January, dropping from -8.7 to -13.1 in May. Current Situation Index slipped from -4.3 to -7.0, while Expectations Index declined from -13.0 to -19.0 – its lowest point since December 2022.
Sentix commented, “The spring upswing in individual eurozone countries has so far been subdued anyway. Now the eurozone economy is being gripped by significant spring fatigue.” The organization added that although the Eurozone economy weathered the winter months better than many had feared, energy shortages remain a perennial issue. High inflation data continues to hamper consumer spending, causing the economic recovery to falter.
Regarding inflation, Sentix noted, “the Inflation Barometer does not indicate any sustained easing, which should give the central banks little leeway to deviate from their restrictive path in their current key interest rate policy.”
