Investor confidence is continuing its downward trend, according to the State Street Investor Confidence index reading for September.
The index fell to 86.9, from August’s revised reading of 91. North American investor confidence continued to decline this month, falling 3.2 points from August’s reading of 84.3 to end at 81.1. Asian investor confidence also suffered, declining 5.6 points to 87.6.
Only European investors bucked the trend, with that continent’s index up four points above August’s reading of 101.
“This month’s decline in global investor confidence is the result of diminished risk appetite among both North American and Asian investors,” commented Harvard University professor Kenneth Froot, one of the developers of the index. “While diminished growth expectations for Asia account for some of the reticence in that region, the third consecutive decline in confidence among North American investors is more puzzling, especially given recent announcements by monetary policy makers on both sides of the Atlantic. It is clear that in their actual portfolios, institutional investors continue to exhibit caution given the global growth backdrop.”