No Change In Economic Sentiment

Economic sentiment (ESI) in Europe in February 2014 was largely unchanged at +0.2 in both the euro area and the wider EU. Industry confidence improved slightly (+0.4) and the increase in services confidence (+0.8) was due to a more positive assessment of the past business situation but consumer confidence deteriorated due to expectations regarding savings, unemployment and the economic future. Retail trade confidence improved overall. An improved assessment of order books improved the confidence in the construction sector but in the financial services confidence decreased by 2.5 points.

Employment plans were revised upwards in services but remained unchanged in industry. Selling prices are expected to increase in services and construction but to fall in retail and industry. Consumer price expectations were rounded down.

In the wider EU, services and retail were positive but consumer confidence declined slightly especially in the UK. Employment plans were more negative in industry than in the euro area alone but were unchanged in retail.

Business More Confident In May

The Economic Sentiment Indicator (ESI) rose in May in both zones according to the European Commission's Department of Finance and Economic Affairs. The ESI increased by 0.8% in the euro area and by 1.1% in the EU. Only construction reported a decrease with industry, services, consumer confidence and retail all reporting an increase in sentiment.

Another business and consumer confidence indicator, the Business Climate Indicator (BCI), also reported an increase in confidence. In May the BCI increased by 0.28% to -0.76%.

Business And Consumers In Europe Still Confident

The Business Climate Indicator (BCI) for the euro area increased slightly in December by .05 to -1.12 due to positive assessments of production expectations and order books.

The Economic Sentiment Indicator (ESI) improved by 1.3 points to 87 from 85.7 in the euro area in December and remained more or less unchanged in the EU27 at 88.4 from 88.1. Economic sentiment in the euro area improved among consumers and in all sectors except retail trade. In the EU27 economic sentiment increased in industry and construction but these were partly offset by decreases in services and retail trade. Consumer confidence in thne EU remained unchanged.

Business Confidence Swings Back In Europe

Busines and consumer survey results from the Director General of Economic and Financial Affairs at the European Commission suggest that economic sentiment increased in the EU in November. The economic Sentiment Indicator increased by 2 points in the EU27 (88.1) and by 1.4 points in the euro area (85.7). The Business Climate Indicator (BCI) also increased by 0.42 points to -1.19 with increases in all of the BCIs components.

Decline In Economic Sentiment In Euro Area

The Economic Sentiment Indicator (ESI) produced by the Economic and Financial Affairs department of the European Commission remained unchanged in the EU27 but declined by 0.6% in the euro area to 89.9. There was falling confidence in industry, services and among consumers but increasing confidence in retail trade and construction.

Sentiment improved in the UK by 1.9 points, Spain (+1) and Italy (+0.9) but got worse in France and Germany by -1.5 and -1.4 points respectively. Germany is the only country which is above its long-term average.

Consumer confidence declined slightly by 0.3 points in the EU27 and 0.5 points in the euro area. The decline is based on falling confidence and expectations about the future general economic situation and increased fears of unemployment. Consumers' expectations about their own financial situation and savings have improved.

Business Confidence Continues To Fall Across Europe In August

The Busines Climate Indicator (BCI) for the euro area fell for the sixth month in a row in August 2011 from 0.44 to 0.07. It reflects pessimism among managers about order books and export order books. Production expectations and observation of production trends also contributed to the low feeling. Stocks appraisals are recovering from historic lows.

The Economic Sentiment Indicator (ESI) fell to 97.3 in the EU and to 98.3 in the euro area. Loss of confidence was particularly marked in services, retail trade and in the consumer confidence indicator.

Business Confidence In Europe In November

The Business Climate Indicator (BCI) for the euro area from the European Commission went up again in November to 0.96 from 0.91 in October and is at its highest since December 2007. The increase is mainly due to better export order books and optimistic production expectations.

The Economic Sentiment Indicator (ESI) for November also increased in both the euro area and the EU27. The main contributor to the increase was sentiment in services which increased by 2.1 to 10.2 in the euro area and 3 to 7.8 in the EU27. Most reported increases in demand and business situation over the last quarter. The ESI in the euro area was at 105.3 and in the EU27 at 105.2.

Business Confidence Unchanged In June

The Business Climate Indicator (BCI) remained unchanged after 14 months of improvement. The indicator suggests that the trend will continue though some momentum may be lost. The Economic Sentiment Indicator (ESI) was also broadly unchanged at 100.1 in the EU and 98.7 in the euro area. The BCI and the ESI data is from the European Commission Director General of Economic and Financial Affairs.