Confidence in the global economic situation and outlook has fallen to a three-year low, according to the latest survey of expert opinion by an influential German think tank.
The Munich-based Ifo Institute said that its World Economic Survey fell by 4.5 index points to 86.0 in the third quarter, dipping to its lowest level in over three years at ten index points below its long-term average.
The latest results published on Thursday signaled a reversal in confidence seen from respondents in the last quarter, Ifo said.
"Experts' assessments of the current economic situation remain unfavorable, while their economic expectations are far more negative than last quarter. Sentiment in the world economy is subdued," Ifo President Clemens Fuest said in the latest report.
The research center interviewed 1,086 economic experts in 115 countries for the latest July 2016 survey which asked respondents to rate the current world economic climate, situation and expectations for the global economy. The survey was started 1981 and provides a global barometer of economic sentiment.
According to the report, the last quarter's upward trend ground to a halt in nearly all regions as concerns over the U.K.'s vote to leave the European Union (EU) and economic slowdown in Asia weighed on sentiment.
"In Europe in particular the economic climate clouded over in the wake of the Brexit vote. The only exceptions to this rule were the Eastern European EU countries, where the climate brightened. Meanwhile in Asia the climate indicator fell to its lowest level in seven years and in North America the index was only slightly higher than its long-term average," Ifo said.
There was, however, an improvement to the economic climate in Latin America and the CIS states (former Soviet countries), although the index rose from a very low previous level.