The Sentix Investor Confidence reading is likely to see Euro Zone sentiment continue to deteriorate in January after issuing the worst print ever since records began in 2002. Investors are struggling to find a silver lining to the prevailing outlook for the currency bloc’s economy: industrial production is shrinking at the fastest rate since 1993; trading terms deteriorated -78% in the year to October, the sixth consecutive double-digit drop in the annualized figure, with economists forecasting that 2008 will mark the first year in seven that the Euro Zone will see a net trade deficit; unemployment is at the highest in nearly two years. A recession was confirmed after GDP shrank in the second and third quarters and a survey of economists conducted by Bloomberg suggests the economy will shrink 1% through 2009.
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