A new Bloomberg Global Poll of international investors finds deflation fears rising and optimism about the world economy at the worst levels in two years.
Nearly two-thirds of investors said the euro zone’s economy is growing worse. The poll also found that 89% of those asked believe deflation is a larger threat than inflation in the year ahead.
The dour economic outlook extended to the global economy also, as 38% of respondents believe the world economy is getting worse. That figure is more than twice the number who responded the same way in July.
The Bloomberg study also found deflation or disinflation fears rising in the United States. Indeed, 47% of investors said deflation was a larger risk than inflation in the year ahead, a 16% jump since July.