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Eurozone investor confidence slumps sharply - Sentix

By Josh White

Date: Monday 08 Sep 2025

Eurozone investor confidence slumps sharply - Sentix

(Sharecast News) - Investor sentiment in the eurozone slumped sharply in September, with the latest Sentix survey showing confidence falling to its lowest level in five months and underscoring renewed fears over the bloc's economic outlook.
The Sentix investor confidence index dropped to -9.2 from -3.7 in August, missing expectations of a modest improvement.

Both the current situation and future expectations weakened, with the current gauge sliding to -18.8 from -13.0, and expectations falling to 0.8 from 6.0.

"Economic anxieties are coming back with full force," Sentix said, adding that summer optimism had "disintegrated at a rapid pace."

Germany was the principal drag; investor morale in Europe's largest economy sank by 9.4 points to -22.1, while its current situation index collapsed to -39.0 from -29.0.

Expectations turned negative again at -3.5, reversing the tentative optimism seen over the summer and highlighting mounting doubts over a recovery from recession.

Sentix pointed to political instability in France, continued weakness in German industry, an "unfavourable" tariff arrangement with the US, and the war in Ukraine as collectively exerting an "oppressive effect" on sentiment.

The US economy also showed signs of softening, with expectations slipping to -10.8 and the current situation index edging to -0.3.

By contrast, Asia, including Japan, remained comparatively resilient, offering some support to global growth trends.

Sentix warned there was little sign of an autumn revival for the eurozone and cautioned that pressure on export-oriented industries was likely to intensify under the new tariff deal with the US.

The institute said that with sovereign debt worries resurfacing, particularly in France, the outlook for the currency bloc remained fragile heading into year-end.

Reporting by Josh White for Sharecast.com.

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