Salem Radio Network News Tuesday, March 28, 2023

Business

Euro zone investor morale unexpectedly falls in March

BERLIN (Reuters) – Investor morale in the euro zone fell unexpectedly in March for the first time since October, dragged down by a decline in expectations as the usual spring revival of the economy is in danger of being short-circuited, a survey showed on Monday.

Sentix’s index for the euro zone fell to -11.1 points for March from -8.0 in February. Analysts polled by Reuters had expected the index to rise to -6.3 in March.

While an index on the current situation rose for the fifth month in a row in March, to -9.3 from -10.0 the previous month, the fact that it remained in negative territory indicates the economy is, at best, in a stagnation phase, the survey showed.

An expectations index, on the other hand, took a nosedive after months of gradual improvement from double-digit lows not seen in year, falling to -13.0 in March from -6.0 in February.

“This stagnation phase could soon turn into renewed recession worries if the negative economic expectations materialize,” said Sentix Managing Director Manfred Huebner in a statement.

“Money supply growth remains weak and, together with the rise in interest rates, is likely to prove a serious burden on the economy in the further course of the year,” he added.

The poll of 1,309 investors was conducted between March 2-4, Sentix said.

(Reporting by Miranda Murray; Editing by Paul Carrel)

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