According to the Directorate General for Economic and Financial Affairs of the European Commission of the EU, the Business Climate Indicator (BCI) for the Eurozone improved further in December.
That is its ninth consecutive monthly increase.
But it remains at a low level, suggesting that year-on-year growth in industrial production was still negative in November.
The significant increase in the BCI reflects an across-the-board improvement in managers' assessments: the perception of the production trend observed in recent months and order books went up strongly, while the rise in export order books and production expectations were not as
pronounced.
The declining level of stocks confirmed further destocking.
Showing posts with label confidence. Show all posts
Showing posts with label confidence. Show all posts
Friday, January 8, 2010
Economic Sentiment Indicator up in December for EU and Eurozone
The Directorate General for Economic and Financial Affairs of the European Commission announced yesterday (Jan. 7) that the Economic Sentiment Indicator (ESI) rose once again in December to 92.0 (+4.1 points) in the EU and to 91.3 (+2.5) in the Eurozone
It has improved in both areas for nine consecutive months since its trough in March
2009, though it still remains below its long-term average.
The majority of Member States reported a general improvement in sentiment.
Among the largest Member States, the UK reported a sharp increase (+8.2 points), followed by France (+4.1), while the improvements were less marked in Italy (+2.9), Germany (+1.7) and Spain (+1.2). Sentiment in the Netherlands remained unchanged and decreased slightly in Poland (-0.6).
Industry:
Sentiment in industry increased by 3 points in both the EU and the Eurozone and remained the main contributor to the overall improvement.
While most respondents in this sector reported strong improvements in their order books, they appear to have scaled back their production expectations. The declining level of stocks, especially in the automotive sector, confirmed further destocking.
Services:
Services increased by 1 point in the Eurozone and by 6 points in the EU, the latter owing to a strong increase in UK services sentiment.
Confidence among consumers improved by 1 point in both areas, as unemployment fears faded.
Mirroring this outlook, employment expectations picked up in industry and services.
No major development was noted in retail, which remained unchanged in the EU and increased by 1 point in the Eurozone.
Construction declined by 1 point in the EU and by 2 points in the euro area.
Confidence in financial services – which is not included in the ESI – remained broadly unchanged in the EU and declined by 2 points in the euro area, where managers' assessment of the business situation over the past three months was significantly more negative than in last month's survey.
It has improved in both areas for nine consecutive months since its trough in March
2009, though it still remains below its long-term average.
The majority of Member States reported a general improvement in sentiment.
Among the largest Member States, the UK reported a sharp increase (+8.2 points), followed by France (+4.1), while the improvements were less marked in Italy (+2.9), Germany (+1.7) and Spain (+1.2). Sentiment in the Netherlands remained unchanged and decreased slightly in Poland (-0.6).
Industry:
Sentiment in industry increased by 3 points in both the EU and the Eurozone and remained the main contributor to the overall improvement.
While most respondents in this sector reported strong improvements in their order books, they appear to have scaled back their production expectations. The declining level of stocks, especially in the automotive sector, confirmed further destocking.
Services:
Services increased by 1 point in the Eurozone and by 6 points in the EU, the latter owing to a strong increase in UK services sentiment.
Confidence among consumers improved by 1 point in both areas, as unemployment fears faded.
Mirroring this outlook, employment expectations picked up in industry and services.
No major development was noted in retail, which remained unchanged in the EU and increased by 1 point in the Eurozone.
Construction declined by 1 point in the EU and by 2 points in the euro area.
Confidence in financial services – which is not included in the ESI – remained broadly unchanged in the EU and declined by 2 points in the euro area, where managers' assessment of the business situation over the past three months was significantly more negative than in last month's survey.
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