The Sentix economic index for the currency-bloc dropped to a score of 5.5 for this month from February’s six. It is the lowest since April 2015. The score was compiled from a poll of 1,102 investors.
“The deterioration of investors’ perspective on the current situation in the Eurozone should resupply dovish members of the European Central Bank (ECB) council with enough ammunition to demand significantly more expansive monetary stimulus at Thursday’s ECB meeting,” Sentix said.
The ECB is widely expected to cut interest rates and boost its asset purchase this week.
“A disappointing headline given signs of stabilisation in financial markets, but consistent with growing headwinds from slow growth in China, a looming Brexit vote, and the migrants crisis,” said economist Claus Vistesen from Pantheon Macroeconomics.
“We note, though, that the expectations index rose modestly to 2.5 from 1.8 in February, giving us some hope that the more widely watched ZEW and IFO expectations indices this month will also rise or, at least, stabilise.”