European investor confidence dropped for the first time in four months in April as the debt crisis damped economic growth, the Sentix research institute said.
An index measuring sentiment in the 17-nation euro area declined to minus 14.7 from minus 8.2 in March, Limburg, Germany-based Sentix said in an e-mailed statement today. A gauge of expectations dropped to minus 9.3 from minus 2.3, while a measure of current conditions fell to minus 20 from minus 14.
The European Central Bank has pumped more than 1 trillion euros ($1.3 trillion) into the banking system to stem a debt crisis that forced Greece into the biggest debt restructuring in history. The euro-area economy will shrink 0.3 percent this year, according to the European Commission, which projects contractions in eight member states and expansion of 0.6 percent in Germany.
“The euro area’s economic stabilization, craved by governments and supported by generous supply of central bank liquidity, is being questioned only one month after the ECB’s second three-year tender,” Sentix said. “The economic recovery in the euro zone is hampered by slight setbacks in growth engines like Asia and Germany.”
Sentix said 847 investors participated in the survey, which was conducted April 4-7. The results are never revised.
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