Eurozone's investor confidence declined to a near two-year low in May as early indicators suggest that the currency-bloc is moving towards recession following the war in Ukraine, results of a closely-watched survey showed Monday.
The investor confidence index dropped more-than-expected to -22.6 in May from -18.0 in April, the behavioral research institute Sentix said. The score was forecast fall to -20.8.
The third consecutive decline took the index to its lowest since June 2020.
"War only knows victims," Sentix said.
The traces of the Ukraine conflict are also becoming increasingly visible in the economy. The sanctions against Russia are having an effect, on enemies and friends alike, the think tank added.
At the beginning of May, the downturn deepened further. Europe is hit particularly hard.
Sentix noted that inflation problems have tied the hands of central banks' which made the situation all the more difficult. The global economy is facing a "perfect storm", the institute said.
In May, expectations as well as situation indicators lost 5 points each. The current situation index fell to -10.5 in May and the expectations indicator slid to -34.0.
Expectations were as low as they were last in December 2008. The survey suggested that only in the 2008 financial crisis were there similarly worrying economic data.
Investor confidence in Germany deteriorated to a two-year low in May. The sentiment index slid to -20.5 from -17.1. With a value of -32.8 points, the expectations plunged to an all-time low. At the same time, the situation index dropped by only 2.5 points to -7.3.
