Eurozone’s Economic Sentiment Plunges to the Lowest Since Mid-2020 in May

Source: Sentix

The eurozone’s Sentix business cycle index plunged to -22.6 points in early May. It is the lowest reading since June 2020. DAX is down -1.70%, EURUSD is down -0.09%.

• The fall in the economic sentiment reflects the impacts of the Russian-Ukrainian war. The degree of current situation and expectations weakened by around 5%.
• The economic expectations were at an all-time low in Germany, after a third successive time of declines.
• The fall in the eurozone sentiment happens amid a global rout. China, which was also impacted by Covid-19 lockdowns, saw the overall index plunged by 10.1 points, while in the US, the index hit -2.9 points.