Euro-zone index collapses again – despite Draghi

Despite the new measures taken by the European Central Bank (ECB) last Thursday the composite index for the euro zone collapses. It falls from +2.7 to now only -9.8 points. As both, the assessment of the current situation and investors' 6-month expectations, now have reached negative territory, the indicator signals a new recession for the euro area! This is all the more noteworthy as during Mario Draghi's presidency the ECB has managed on several occasions to turn round investors' economic expectations. Now, this does not seem to work anymore. In this context it is interesting to know that 6-month expectations of the global aggregate have fallen to their lowest level since November 2012, the time when Japan started its "Abenomics" and managed to influence investors' expectations positively. But obviously central banks have currently – against the backdrop of a number of geopolitical conflicts – lost their power to steer investors' economic expectations.

Full report September 2014

Headlines of the month

  • Despite the new measures taken by the European Central Bank the sentix Economic Index for the euro zone collapses by 12.5 to now -9.8 points in September.
  • Both components of the composite index, the assessment of the current situation as well as investors' 6-month expectations, now have reached negative territory. This constellation signals a renewed recession for the euro zone.
  • For Germany, the US and Japan the composite indices fall, too. Glimmers of hope come out of the emerging-markets regions. Nevertheless, the index for the global aggregate recedes. 6-month expectations for the global economy even fall to their lowest since November 2012 – the starting point of the Japanese "Abenomics".

More sentix Economic indices

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