Economic sentiment indicator
ESI stable in EU, slips in eurozone
By Eric van Puyvelde | Thursday 28 June 2012
The economic sentiment indicator (ESI) remained unchanged, at 90.4, in June in the EU but decreased by 0.6 points in the eurozone, to 89.9. The European Commission’s monthly analysis of its business and consumer survey, published on 28 June, notes that confidence declined in industry, services and to a lesser extent among consumers, but was counterbalanced or mitigated by increasing confidence in retail trade and construction. Among the largest member states, the ESI worsened in France (-1.5), Germany (-1.4), Poland (-1.3) and to some extent in the Netherlands (-0.3). By contrast, sentiment improved in the United Kingdom (+1.9), Spain (+1) and Italy (+0.9).
Confidence declined in industry in both the EU (-0.7) and the eurozone (-1.3) because of a deterioration in managers’ production expectations and their assessment of the current level of order books, past production and the current level of export order books. Confidence in services also declined in both the EU (-1.2) and the eurozone (-2.2).
Employment prospects declined for the EU and the eurozone for industry and services, but rose for retail trade and construction. Selling price expectations decreased significantly in all business sectors except construction.
Confidence among consumers declined slightly, by 0.3 points in the EU and 0.5 points in the eurozone, due to concerns about the future general economic situation and unemployment fears. By contrast, consumers’ expectations about their own financial situation improved in both the EU and the eurozone.