| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

Home 
 
 News
 Irish
 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 International
 Property
 Innovation
 
 Analysis/Comment
 
 Asia Economy

RSS FEED


How to use our RSS feed

 
Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.

Welcome

Finfacts is Ireland's leading business information site and you are in its business news section.

Links

Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News

Newspapers

Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News

 

Feedback

 

Content Management by interactivetools.com.

News : EU Economy Last Updated: Jan 27, 2011 - 1:40 PM


Eurozone business climate indicator improved again in January; Economic sentiment indicator unchanged
By Finfacts Team
Jan 27, 2011 - 1:37 PM

Email this article
 Printer friendly page

The Eurozone business climate indicator improved again in January while the economic sentiment indicator was unchanged.

Business Climate Indicator further improves in the Eurozone: The Business Climate Indicator (BCI) for the Eurozone increased further in January, albeit at a slower pace. The level of the indicator is approaching historical peak reached in spring 2007, suggesting that the recovery in industry will continue in the coming months.

The rise in the BCI is due to strong increases in export order books, order books and in production trend observed in recent months. By contrast, managers' assessment of production expectations was more cautious. Finally, their appraisal of stocks of finished goods remained unchanged, standing at very low level by historical standards.

Economic sentiment broadly unchanged in both the EU and the Eurozone: In January 2011, the Economic Sentiment Indicator (ESI) remained broadly unchanged, at 105.8 in the EU and 106.5 in the Eurozone. After 7 months of uninterrupted improvement, the indicator stands well above its long term average. A majority of Member States reported either an improvement or a stabilisation in sentiment. Among the seven largest Member States, the Netherlands (+2.5 points) reported the most significant increase, followed by France (+0.8). Italy and Spain remained broadly unchanged. The UK (-1.2), Poland (-1.6) and Germany (-1.7) reported a significant worsening in sentiment. In Germany, France, the Netherlands and the UK, the ESI is above its long-term average.

Sentiment in industry, which increased by 1.1 points in the Eurozone and by 0.6 point in the EU, continued to contribute positively to the overall results. The gain in confidence in this sector reflects sizeable improvements in order books, while managers were more cautious about their production expectations. Stocks of finished goods remained at a very low level by historical standards. In addition, managers in industry were upbeat about their export order books and past production trends. The quarterly manufacturing survey (also released this month) indicates a continuous upwards trend in capacity utilisation. Capacity utilisation now stands at about 80% in both the EU and the Eurozone, approaching its long term average (81%).

Confidence among consumers declined slightly in the EU (-0.5) and remained stable in the Eurozone. In both regions, a slight easing of consumer's unemployment fears was counterbalanced by a worsening of their assessment of the general economic situation and deterioration in their financial situation. Sentiment in construction increased moderately in the Eurozone (+0.5) and remained broadly stable in the EU. The indicator stands at very low levels in both regions. Confidence in services remained flat in both regions. Sentiment in the retail sector weakened substantially in both the EU (-4.2) and the Eurozone (-4.4), after the significant gain registered in December.

Managers in industry signalled a significant increase in their selling price expectations, while households also reported a rise in their assessment of past and future price trends.

Confidence in financial services – not included in the ESI – improved significantly in the Eurozone (+2.5), and remained unchanged in the EU.

Related Articles
Related Articles


© Copyright 2010 by Finfacts.com

Top of Page

EU Economy
Latest Headlines
Spain's strong recovery to slow in the next few years
Italy's Mezzogiorno is Achilles' heel of Euro Area - lowest birth rate since 1862
Euro Area GDP grows at weak 0.3% in Q2 2015
German GDP up 0.4% in Q2 2015; France's GDP stagnates
Germany's Surplus: Lots of critics; Credible solutions scarce
Euro Area industrial production dips in June and May after a flat April
Greece faces two years of recession according to EU officials
High EU youth unemployment rate not as bad as it seems
Eurozone retail PMI surges to highest since January 2011
ECB monetary policy still tight for Southern Europe
German exports fell in June — surplus at record; Exports up 13.7% year-on-year
Eurozone manufacturing sector continued to expand in July
Weak euro unlikely to have significant impact on Euro Area growth
Is Euro Area Ireland's top trading partner?: EU28 is overwhelmingly UK's
German car firms boost exports from Spain, UK, Portugal, Czech Republic, Slovakia, Hungary and Romania
Flash Eurozone manufacturing/ services PMI close to four-year high despite Greek crisis
Krugman calls euro a Roach Motel; Hotel California gets 1-star grade
Greece & Euro Crisis: July 2015 articles from Finfacts
Greece and other poor countries in Euro Area will not become rich
Euro Area manufacturing/ services PMI hits four-year high in June
Western European car market: Recovery continues
Greece could become a failed state like Venezuela
Multinational companies pay on average 30% less tax than domestic competitors in EU
EU's list of 30 tax havens omits the biggest 4 in Europe
China to invest in Juncker's European investment fund
Greek talks collapse; Game theorists gambling with future — Germany's vice-chancellor
German exports and industrial production in strong rises in April
Tackling Inequality: Scandinavian countries have the most successful welfare systems in Europe
Eurozone unemployment fell by 130,000 in April 2015 — down 849,000 in 12 months
Eurozone service sector business activity slowed during May
German 2015 GDP forecast cut; Jobless level at 24-year low
Eurozone manufacturing in modest acceleration in May
FDI into Europe at record in 2014; UK on top: Germany location for future investment
Eurozone economy loses growth momentum; Jobs growth rises
Athens leak suggests Juncker has plan for Greece
Draghi will not end QE early but warns of risks
Eurozone grows faster than US and UK in Q1 2015
German GDP at slower pace, France faster in Q1 2015
Germany may cut income tax; Germans still shun risky investments
Germany had record exports and imports in March 2015