Investor confidence fell in July as the perception of growing risks coming out of the euro zone resurfaced with added intensity, according to a survey of fund managers released by Bank of America-Merrill Lynch

Investor confidence in the idea that corporations can grow their profits by 10% or more is at its lowest point since April of 2009. In fact, 69% of the investors interviewed expect profit growth at corporations to be less than 10% in the coming year. About 58% believe operating margins will fall, up from 41% in June.

“July’s survey highlights that corporate profit expectations have to catch up with the downgrade in the economic outlook we have seen the past two months,” said Gary Baker, head of European Equities strategy at BofA Merrill Lynch Global Research.

Meanwhile, the number of investors who see the potential for negative shocks from European debt issues has tripled to 32%, up from 10% in June.

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