Economic indicator in the euro area rises in December - Sentix survey

Economic indicator in the euro area rises in December - Sentix survey

According to a report by www.zeit.de, economic sentiment in the euro area improved in December, but not as significantly as analysts expected. The economic indicator rose by 1.8 points to minus 16.8 points. Expectations regarding economic development brightened only slightly, but the current situation was assessed noticeably better. Nevertheless, the analysis institute Sentix does not expect a trend change for the better.

Sentix assesses the situation in Germany as gloomy, as the German economy continues to be at the bottom of the world regions under consideration. Although the overall index has risen for the third time in a row, the value remains so low that it was only undercut during the financial crisis in 2008 and during Corona in 2020. There is still no sign of a trend reversal in Germany. The survey was conducted between November 30th and December 2nd among 1,245 investors.

This development may lead to a cautious stance among investors, as the slight improvement in economic sentiment and the gloomy situation in Germany point to a slow economic recovery. This could result in lower investment in European stocks and other financial instruments. This could also have a negative impact on the euro exchange rate as investors may choose safer investments outside the euro area.

It is therefore advisable to closely monitor market developments and investor reactions over the next few weeks in order to make appropriate adjustments to investment strategies.