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 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.

Business Confidence In Europe Shows Mixed Picture

Business confidence surveys in Europe show that economic sentiment (ESI) has remained broadly unchanged in the EU as a whole and in the euro area at respective levels of 93.8 and 94.8. There are mixed signals in the underlying data. Declines in industry and among consumers were offset by increases in retail, services and construction in EU27 and in construction and services in the euro area. While the economic sentiment results are unchanged the business climate survey (BCI) recorded a continued fall. The steady fall over the last eight months suggests a significant slowdown in production growth.

Growth In Manufacturing Output

An increase in overseas demand for UK goods and continued stock reduction saw manufacturing production increse for the first time in two years according to the latest CBI Industrual Trends survey for the three months to January 2010. Weak demand and access to finance mean that the outlook is still uncertain.

The survey reports the strongest output since January 2007 and the first increase in export orders since January last year. De-stocking is slower however and demand is weaker than expected. Business confidence is continuing to get better and more more managers are optimistic than three months ago. Fewer businesses reported reductions in staff numbers.

Business are also reported to be planning to invest in training and retraining and innovation. Capital investment in buildings is expected to be reduced but plant and machinery investments will remain almost unchanged. Firms are working below capacity and domestic prices are expected to rise.