European investor confidence fell to the lowest in more than two years in November on concern that Europe’s sovereign debt crisis will push the region into recession.
An index measuring sentiment in the 17-nation euro area declined to minus 21.2 from minus 18.5 in October, the Limburg, Germany-based Sentix research institute said in an e-mailed statement today. That’s the lowest since August 2009. Sentix said a gauge of current business conditions plunged to minus 11.75 from minus 5.75, while an indicator of expectations rose to minus 30.25 from minus 30.5.
European stocks declined last week as uncertainty increased over leaders’ ability to find a solution to the two-year-old debt crisis. The European Central Bank on Nov. 3 said a “mild recession” is likely and unexpectedly cut its benchmark lending rate by a quarter point to 1.25 percent to shore up confidence and growth.
Investors are “just as disappointed about the ongoing debt crisis and weak stock markets as they are about the solutions presented by central bankers and politicians,” Sentix said in a statement. “We now have to seriously consider the possibility of a recession.”
Sentix said 908 investors participated in its monthly survey, which was conducted Nov. 3-5. The results are never revised.