Investor morale in the euro zone has deteriorated in October, ending five consecutive monthly improvements, a survey showed on Monday, signalling concerns about rising coronavirus infections.
Sentix’s index for the euro zone fell to -8.3 from -8.0 in September, compared with a Reuters forecast for a reading of -9.5.
The current situation index rose to -32.0 from -33.0 the previous month, reaching its highest level since March, when Germany instituted lockdowns and social restrictions to slow the spread of COVID-19.
The expectations index fell to 18.8 from 20.8, its lowest since May, indicating concerns about a possible spike in infections during the winter months.
Patrick Hussy of Sentix downplayed the significance of the slight drop in morale and said the survey did not reveal an imminent danger to the euro zone economy.
“The economic recovery in the euro zone is having a breather,” he said in a statement. “The data contain no noteworthy, short-term risk element. The expectations index is still at a high level despite the two-point drop.”
Sentix surveyed 1,085 investors from Oct. 1 to 3.