Euro Zone Sentix Index Touched 13 During May

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Euro Zone Sentix Index Touched 13 During May

Euro Zone's Sentix Index Touched -13.1 During May

Sentix's index, which tracks the investor's morale in the Euro Zone, took a dip during the month of May. Considering the energy concerns, high inflation, and fewer chances of a spring recovery, it all makes sense.

For the month of May, the Eurozone's Sentix index reached -13.1 points, while it was only -8.7 points in April. So overall, the investor's morale in the Eurozone has deteriorated even further.

One of the Lowest Levels Since 2022

According to experts, the index has touched one of its lowest levels ever seen since December 2022. And when we consider the current situation in Ukraine; it has wiped out the hopes of any economic recovery in the block.

The barometer, which tracks the investor's morale, entered into negative territory in February. As per the experts, there are a lot of reasons for this negative sentiment among the investors, such as:

Then there are the new regulations in the Eurozone regarding heating systems. For instance, Germany decided that all new heating systems in the country must run on at least 65% renewable energy starting next year (2024).

When we consider how the Eurozone economy recovery was built on weak foundations, it all starts to make sense. Now that the economic recovery has started to falter, it wouldn't be a surprise to most.

In recent months, the EU economy was showing signs of recovery mainly due to renewed demand for services and upgraded forecasts by the IMF.

However, the recent weakness has cast a shadow on the economic recovery amid weak purchasing power and rapid inflation.

Germany which is one of the largest economies in Europe also had a major fall in May as the index reached -9.0. Just a month ago, the value was only -2.3!

In addition, the manufacturing sector of Germany is also struggling which has raised fears of a recession in the European Union.

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