Unique decoupling
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10 March 2025
Posted in
sentix Economic News
The announcement of debt-financed armaments programmes (EU and Germany) and infrastructure investments (Germany) has investors positively euphoric about further economic development. The sentix economic index for the euro area rises by 9.8 points to -2.9 points. At the same time, we are witnessing a historic crash in US eco-nomic indicators, the likes of which we have only seen during the 2008 financial crisis. The US expectations index falls for the third time in a row by 25.8 points to -17.8 points. How realistic and sustainable are both investor-designed scenarios?
Headlines of the month
- The sentix economic data is making history. The expectations index for the eurozone rose by 17 points to +18. This is the best reading since July 2021 and the largest monthly change since 2012 (euro crisis) and 2020 (corona-virus).
- The root cause of this is new debt. In the EU (armaments) and in Germany (for armaments and infrastructure). For Germany, investors are downright euphoric. Expectations jump by 26.3 points, and the overall index rises by 17.3 points.
- The picture is quite different in other world regions. In the US, we are seeing a massive slump in both current sit-uation and expectations values, the likes of which we have only seen during the 2008 financial crisis. Japan is also disappointing with a decline in current situation and expectations values of around 3.5 points.
sentix Eco Report Euro area
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