Sentix: Eurozone Investor Sentiment Deteriorated in November But Above Expectations

The survey showed investor sentiment in the euro area declined for the second month in a row in November, but the decline was not as severe as some feared, given that the restrictions imposed to curb the outbreak of the Coronavirus did not harm the economy as expected.

The Sentix Eurozone index fell to -10 in November from -8.3 in October, compared to Reuters’ forecast for a reading of -15.0.

“The renewal of lockdown measures in many European Union countries had fewer consequences than feared,” said Manfred Huebner, director at Sentix. He added that this was likely due to positive developments in Asia and the United States, where there were no severe restrictions imposed on economic activity.

In Germany, the status quo index improved for the sixth consecutive month, to its highest level since March. Forecasts for Europe’s largest economy fell to their lowest level since May.

But Sentix said, “The outlook remains positive and indicates that the recovery path has not yet been abandoned.” The survey covered 1,114 investors from the fifth to the seventh of November.