The euro area index had returned to positive territory for the first time in February at 4.2 points.
Global economic sentiment deteriorated significantly in March, while the index for the eurozone fell by 7.3 points to minus 3.1 after three improvements in a row, sentix said.
The sentix German economic index fell by 5.2 points to minus 12.1, signalling a renewed downturn after a glimmer of hope.
The sentix overall index for the US fell from 12.7 to 7.2 points after rising for several months in a row.
This development is linked to the escalation of the Iran war, which is weighing on global energy markets. Attacks on energy infrastructure and disruptions to shipping in the Persian Gulf are weighing on sentiment.
The sentix overall index fell from 15.2 to 9.7 points, thereby relinquishing some of its previous positive momentum. Although the current situation remains comparatively robust at 12.3 points (February: 14.7), economic expectations, at 7.2 points, have also declined sharply globally, reaching their lowest level since September 2025.
The downturn is evident in many regions of the world. In addition to the established economies, Asia and the emerging markets are also coming under pressure, mainly due to the slowdown in global demand, the oil price shock and emerging inflation concerns.
In this environment, central banks are likely to find it difficult to support the capital markets with cheap money, sentix said in a release.
The decline in economic expectations in the Eurozone is particularly pronounced: after 15.8 points in February, they fell by 12.3 points to 3.5 points in March. The energy price shock and geopolitical risks are dampening the previously increased optimism for the eurozone economy, sentix noted.
The sentix theme barometer for inflation also shows a sharp rise in inflation concerns in the eurozone. The barometer has fallen significantly from minus 7.5 to minus 35 points, signalling a new surge in inflation. The main drivers are the considerable turmoil on the energy markets and the sharp rise in oil prices.
This also puts central banks in the euro area under greater pressure. While it was previously assumed that monetary policy could continue to provide moderate support to the capital market, a renewed rise in inflation could force monetary authorities to take more restrictive action. Against this backdrop, additional monetary policy support for the eurozone economy appears increasingly unlikely.
The sentix economic index for Germany fell by 5.2 points to minus 12.1, signalling a renewed downturn after the recent glimmer of hope.
The sentix overall index for the US economy fell from 12.7 to 7.2 points after rising for several months in a row. The assessment of the current situation remains robust at 19 points, even if it is slightly below February’s figure of 21.8 points.
Economic expectations for the United States, however, are significantly weaker. The expectations index fell from 4 to minus 4 points, slipping back into negative territory. Investors attribute the strain on the US economy primarily to weaker global demand, which was triggered by geopolitical tensions and the oil price shock.
Fibre2Fashion News Desk (DS)
