FRANKFURT, Jan 6 Reuters Investor morale in the euro zone fell in January to its lowest in more than a year, a survey showed on Monday, with Germany remaining a continued drag on the bloc.

The Sentix index for the euro zone dropped to 17.7 in January from 17.5 in December. That is the lowest level since November 2023, though it was not as bad as the 18.0 forecast by analysts polled by Reuters.

In the euro zone, the economic engine is threatening to freeze up for the longterm, the survey said, adding that Germany39;s recessionary economy is hanging on to the euro zone like a lead weight.

The survey of 1,121 investors from Jan. 2 to Jan. 4 showed expectations slightly improved to 5.0 in January from 5.8 points last month.

But that gain was outweighed by the worsening view of the current situation, which sagged to 29.5 in January from 28.5 in December. That is the lowest level since October 2022.

The survey also found that Germany Europe39;s largest economy and one facing federal elections next month appears to be in recession and is unlikely to emerge from it any time soon.

Reporting by Tom Sims, editing by Rachel More

Source Reuters