European investor confidence dropped for the first time in seven months in February as the economic recovery showed signs of losing steam.
An index measuring sentiment in the 16-nation euro region fell to minus 8.2, a four-month low, from minus 3.7 in January, the Limburg, Germany-based Sentix research institute said today.
A gauge of current business conditions fell to minus 19.5 from minus 17.5, while a measure of expectations dropped to 3.75 from 11.25.
Expansion in Europe's service and manufacturing industries slowed in January and retail sales failed to grow for a second month in December as rising unemployment damped consumer spending. Investor concern about soaring budget deficits in Greece, Spain and Portugal is also hurting the euro and stocks.
Europe's DJ Euro Stoxx 600 Index has dropped 5.6 percent this year. Today's report suggests "the economic recovery will take a breather in the second half of the year," Sentix said in an emailed statement.
The prospect of cooling growth in Asia weighed on the outlook for Europe, the institute added.
Sentix said 918 investors responded to its monthly survey, which was conducted between February 4th and February 6th.
Bloomberg