Euro zone shrinking, the world feeble

In October, the composite index for the euro zone falls for the third time in a row. As both the assessment of the current situation and the 6-month expectations are now clearly in negative territory, the sentix indices signal shrinking output for the euro area. And there are no positive news coming from the indicators for the other coun-tries or regions either: all composite indices recede this month! Even for the US and Asia ex Japan – both stood out until recently with rather solid indices – the economic shine fades. It is mainly investors' 6-month expecta-tions that worsen. All in all, the data points to a nearing downturn of the world economy.

Full report October 2014

Headlines of the month

  • In October, the composite index for the euro zone falls from -9.8 to -13.7 points. This is its third consecutive decrease. As the assessment of the current situation and the 6-month expectations both are now clearly in negative territory, the sentix indices point currently to a recession in the euro area.
  • A similar development can be observed for Germany. Its composite index falls from 11.1 to 5.4 points. The as-sessment of the current situation here is the component which keeps the indicator above the zero line – but it is falling, too!
  • For all the other regions and countries the composite indices recede, too. The index for the global aggregate falls to its lowest reading since November 2012. It is mainly the 6-month expectations which worsen. According to the sentix indices the world economy thus is about to enter a downturn.
Euro area Mar 16 Apr 16 May 16 Jun 16 Jul 16 Aug 16
Overall Index 5.5 5.7 6.2 9.9 1.7 4.2

More sentix Economic indices

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