Investorconfidence in the euro zone fell this month to its lowest level since May 2020,a survey showed today , suggesting a recession in the 19-member bloc is "inevitable".
The Eurozone Sentix index fell to -26.4 from -15.8 in June.A Reuters poll had forecast a negative 19.9 reading for July.
"The energy crisis is causing serious economic distortions," Sentix managing director Manfred Huebner said in a statement.
"In every way, the situation is reminiscent of the crisis of 2008, when the financial system collapsed and now there is a danger of a collapse in European energy supplies," he said.
Germany, Europe's largest economy, launched the second phase of its three-tier emergency gas plan last month after Russia reduced the amount of gas it sent through the Nord Stream-1 pipeline - a step ahead of government restrictions on fuel consumption.
The Sentix index, which reflects the current state of the euro zone, fell to its lowest level since March 2021, while the expectations index fell to its lowest level since December 2008.
Huebner added: "The current situation score justifies the inevitability of a recession."
