A punch below the belt

11 June 2019
Posted in sentix Economic News

As soon as the hopeful data of the sentix economic index had been published in May, the US president made a mistake in investors' calculations. At the latest since the US government prohibited US companies from doing business with the Chinese telecom supplier Huawei, it has become clear that a "cold" trade war is threatening to become a "hot" one. This development has pulled investors out of their upswing hopes and led to considerable setbacks in the sentix economic indices in all regions of the world. For the Euro zone, the overall index drops from 5.3 to -3.3 points.

Full report June 2019

Headlines of the month

• The renewed escalation in the US-China trade dispute is also having a considerable impact on the Euro zone economy. The overall index fell by 8 points to -3.3 points in May.
• In Germany, the situation is even more serious as the overall index slides back into negative territory for the first time since March 2010. This makes a recession very likely.
• Although the US president feels he is the sure winner of his trade policy, this does not protect the US economy from the consequences of his policies. The US overall index fell by more than 10 points to its lowest level in Feb-ruary 2016. In Austria, too, political factors are having a very negative impact on economic expectations. They're down a staggering 32.6 points.

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