BERLIN (Reuters) – Eurozone sentiment fell sharply in June, falling short of expectations as the US-China trade dispute intensifies again, a survey released on Tuesday showed.
The Sentex Research Group said its euro zone investor confidence index fell to -3.3 in June from 5.3 in May. Analysts had expected the index to hit 2.9.
"The escalation of the US-China trade dispute has once again had a major impact on the euro zone economy," said Manfred Hubner, managing director of Sentex.
The euro area subscript fell to -12.3 from -0.3 to the lowest level since February, and lowered the index to the current situation from 11.0 to 6.0.
Investor sentiment in Germany fell to -0.7 for a negative reading for the first time since March 2010.
"This makes a recession very likely," he said.
More than 900 investors took part in the survey, which took place between June 6 and June 8, Sentex said.