sentix Economic News

Read the latest information and indications about the "first mover" among the economic indicators!

Background information on the sentix economic indicators

World economy in the grip of the virus

While at the beginning of the year there was still a clear upswing scenario for the global economy, the outbreak of the corona virus in China has changed the situation significantly. The drastic measures taken by the Chinese government for the Hubei region show the danger to the global economy if the outbreak cannot be limited re-gionally. So far, however, the effects on the economy have been relatively limited from the point of view of the investors surveyed by sentix, even if they are significant for China. The strength of the USA is helping the global economy.

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The next surprise at the start of the year

The riots surrounding the conflict between the US and Iran, which dominated the news at the end of the week, were either ignored by investors or are not considered to be crucial for the economy. This is the result of the sentix economic survey, which brought a further improvement in the economic assessment of the global econo-my at the beginning of the year. This is the third surprise in a row for the "first mover"! The data for all regions of the world are improving, especially in Asia ex Japan.

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Second exclamation mark of the "first mover”

Many economic observers have come to terms with an economic downturn. But the "first mover" is sending an exclamation mark for the second month in a row with its dynamic turn: The sentix overall index for Euroland rises again, the expected values even reach the highest level since March 2018! Many things are going better than expected, the prospects are brightening across the globe. The Asia ex Japan region is developing into a special source of hope - especially for the German economy.

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An exclamation mark of the first mover

The global economy could go through an important low just these days. This is indicated by the latest data from the sentix economic indices. The overall index for Euroland rises by 12.3 points to -4.5, the expected values even jump by 14.5 points to their highest level since May 2019. Can the recession thus be averted? At any rate, hopes are pinned on new signs of recovery from China and the resilience of the US economy.

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Central bank impulses fizzle out

There is no positive reaction to the central banks' aid measures, and economic assessments are broadly negative in October. At -16.8 points, the sentix overall economic index for the Euro area marks the lowest level since April 2013. The recovery of expectations from the previous month has thus completely evaporated. In addition, the assessment of the current situation gives cause for concern. For the eurozone, this falls by 6 points to a 5-year low, and for Germany the value drops for the fifth time in a row at a rapid pace. Fears of recession are immanent. The other regions of the world are also descending.

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