BERLIN Investor morale in the euro zone sank more than expected in July, hitting a low not seen since Europe's energy crisis last November, as the currency union remains in recession mode with no indications things will improve, a survey showed on Monday.

Sentix's index for the euro zone tumbled to -22.5 points in July from -17.0 in June, dipping further than expected by analysts polled by Reuters, who forecast a reading of -18.0.

"There is also nothing positive to report in terms of forward-looking expectations," said Sentix managing director Manfred Huebner, after the corresponding index tumbled 6.2 points to -24.5 in July, also its lowest since November 2022.

"The question is where an improvement could come from," said Huebner, as investors surveyed expect central banks to further restrict monetary policy, and the US economy, which has resisted the global downturn, is not spreading positive momentum.

Huebner singled out Germany, Europe's largest economy, in particular for having "dramatically bad" values: The overall index fell 7.3 points to land at -28.4, with similarly large dips in the current situation and expectations indices.

The poll of 1,226 investors was conducted between July 5-7, according to Sentix.

(Reporting by Miranda Murray, Editing by Rachel More)