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 Confidence Still Below Long-Term Average

The business climate and consumer confidence surveys published by the European Commission's Department of Economic and Financial Affairs say that while the business climate has remained stable in January 2013 at -1.09, economic sentiment has increased by 1.4% in both the EU and the euro area. It is the third month in a row that economic sentiment has risen but it remains below its long-term average.

Confidence increased in the services, construction, retail and consumer confidence but decreased in industry in the EU. In the euro area it was much the same picture, but retail and industry remained unchanged.

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.

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.

European Business Confidence Still Low

The Business Climate Indicator (BCI) for the euro area fell by 0.24 to -0.52 in April 2012 according to statistics from the Director General of Economic and Financial Affairs at the European Commission. The decline in confidence was mainly due to a negative assessment of export order books, past production and overall order books. Managers assessments of stocks of finished products remained unchanged. While business confidence fell slightly in April the Economic Sentiment Indicator remained stable in the EU at 93.2. In the euro area in fell significantly to by 1.7 points to 92.8. The decline was mainly due to less confidence in the industry and service sectors. The retail sector improved. The more positive index in the EU27 was mainly due to improvements in the UK. Economic sentiment remains well below its long term average. A flash estimate of consumer confidence shows that consumers were less confident in April than in March. In April the indicator declined to -20.1 from -19.3 in March in the EU27 and from -19.1 to -19.8 in the euro area.

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.

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.