Eurozone investor confidence is starting to wobble, according to Sentix — just a month after the German research house warned there was a “danger of overheating” because of widespread global growth.

The headline index for the single currency area weakened by one point to 31.9 in February, Sentix said, as a decline in future expectations outweighed an increase in the assessment of the current situation, which stands at the highest level since August 2007.

“The recovery process in the eurozone is… continuing, although the first clouds are appearing in the blue economic sky”, it said.

German investors were markedly more glum about the country’s prospects, probably due to disenchantment with the sluggish grand coalition negotiations, according to Sentix. Expectations in the country dropped by six points to their lowest level since July 2016.

Elsewhere, the sun shines brighter.

The regional economies in eastern Europe and Latin America “are clearly improving”, Sentix said, Asia — excluding Japan — is “in good shape”, and the US shows prospects for further improvement post-tax reform. Japan meanwhile has the bad fortune to be lumped in with “Euroland”, showing a slight loss in economic momentum, according to Sentix.

While the headline figure for the eurozone was “disappointing”, Claus Vistesen at Pantheon said that it would be “much worse next month if the current slide in both bond and equity prices continue.”

“The key risk is that a decline in investor sentiment spills over into economic confidence”, he added.

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