Investor confidence in the eurozone economy weakened significantly in March. According to a survey by research firm Sentix, the decline is largely driven by concerns over the impact of the conflict in the Middle East, which could disrupt energy supplies and slow global economic growth.
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Sentix Index Records First Drop in Four Months
According to the latest data, the Sentix investor confidence index for the eurozone fell by 7.3 points to -3.1 in March. This marks the first decline in investor sentiment in the past four months. The survey was conducted last week and included responses from more than a thousand investors.
Sentix managing director Patrick Hussy said the development raises doubts about the current economic recovery in the eurozone. According to him, investors are once again becoming more cautious as geopolitical risks begin to weigh on economic expectations.
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Rising Oil Prices Add to Economic Uncertainty
Investors are increasingly concerned that the conflict in the Middle East, triggered by U.S. and Israeli strikes on Iran, could disrupt global energy supplies. These fears have already pushed oil prices above $100 per barrel, reaching their highest levels since mid-2022.
Hussy noted that attacks on energy infrastructure and potential disruptions to shipping in the Persian Gulf are negatively affecting market sentiment. Higher oil prices and the resulting economic uncertainty are therefore seen by investors as a risk for the eurozone’s economic outlook Eurostat.
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Source: ČTK
