BERLIN (Reuters) – Investor morale in the euro zone tumbled in April to its lowest point in more than a year, a survey showed on Monday, as U.S. President Donald Trump’s tariffs hammered sentiment in the bloc.
The Sentix index for the euro zone fell to -19.5 in April from -2.9 in March, its lowest level since October 2023 and below the -10.0 forecast by analysts polled by Reuters.
The 27-nation bloc faces 25% import tariffs on steel and aluminium and cars and “reciprocal” tariffs of 20% from Wednesday for almost all other goods under Trump’s measures.
The survey of 1,127 investors from April 3-5 showed that economic expectations for the next six months were hit particularly hard by the tariff announcement, falling by 33.8 points to -15.8 in April.
That is the second sharpest fall in the history of Sentix data since 2002, topped only by Russia’s invasion of Ukraine.
The current situation index recorded only a slight fall, to -23.3 in April from -21.8.
Expectations for Germany, Europe’s largest economy, recorded an even stronger fall, dipping by 36.3 points to -15.8 in April.
“Hopes following the planned debt orgy have been buried,” said Sentix in a statement, referring to debt-financed investments planned by the newly forming German government aimed at bumping up defence and infrastructure.
(Reporting by Miranda Murray, editing by Rachel More)
