2018.05.0800:07:00UTC+00Eurozone Investor Morale Slightly Fell in May - Sentix

Eurozone investor sentiment edged lower in May, following a series of sharp declines that came amid a soft patch of data covering the currency bloc.

A gauge of investor sentiment compiled by Sentix, a research institution, dropped to 19.2 in early May from 19.6 in April. While the rate of decline eased, the level is now at its lowest since February 2017 and has dropped sharply from 32.9 at the start of the year.

Economists had expected investor confidence in the eurozone to make a modest rebound in May.

According to Sentix, persistent concerns over trade — and particularly over whether the US will slap the eurozone with tariffs — had weighed on sentiment. The strengthening euro is making the bloc's exports less competitive and fears that a tit-for-tat tariff exchange between the US and major trading partners could lead to a resurgence in protectionist policies also knocked sentiment, Sentix said.

Amid concerns that eurozone growth has ­already peaked, the sub-index of current conditions dropped to its lowest level since October 2017, while expectations fell to the weakest point in over three years.

A Sentix survey for Germany also declined for the fourth consecutive month, hitting its lowest since September 2016.

Eurozone economic expansion cooled down in the first quarter after a strong performance in 2017. In fact, figures released last week show that the bloc's economy expanded at the weakest pace in 18 months over the period. Data covering the second quarter have also been weak.