Sentiment in the eurozone dropped for a third consecutive month in October, hitting its lowest level since May 2013, suggesting the single currency bloc will fall into recession, a survey by Sentix showed yesterday.

Sentix research group’s index tracking morale among investors in the eurozone tumbled to -13.7 in October from -9.8 the previous month. That undershot the consensus forecast in a Reuters poll for a reading of -11.5.

“While expectations were only just below the zero-mark in September, they are now clearly in negative territory and that means a technical recession in the eurozone – two consecutive quarters of contraction – is ever more likely,” Sentix said in a statement.

“It’s conspicuous that neither the European Central Bank’s rhetoric nor its measures were able to drive up investors’ expectations of the economy this month,” Sentix added.

Last week the ECB laid out plans to buy rebundled packets of debt within weeks to shore up the flagging eurozone economy and its president said the bank would do more if needed.

A sub-index of expectations for the eurozone’s economy fell to -7.3 in October, its lowest level in two years, after a reading of -2.5 in September.

Investors’ perception of the current eurozone situation dropped to its weakest level since August 2013.

An index tracking Germany plunged to its lowest level since September 2012, with Sentix saying investors seemed to be increasingly concerned about economic risks such as tensions over Ukraine and other crises abroad as well as the US Federal Reserve’s tighter monetary policy.

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