The Business Climate Indicator (BCI) for the euro area fell again in March, to its lowest level since January 1985.
This points to another markedly negative outcome for year-on-year industrial production growth in February, after the record fall registered in January.
Given the current levels, it also suggests that industrial production growth will remain clearly subdued in March.
The drop in the BCI reflects a worsening situation in most of its underlying components, a European Commission media statement said.
Managers' assessment of current overall order books and export order books deteriorated even further from last month's level.
Stocks of finished goods have again risen towards December's record highs, while the production trend observed in recent months improved only marginally from a very low level.
Looking forward, managers remain very negative about their production expectations outlook.
In March, the Economic Sentiment Indicator (ESI) for the EU and the euro area declined again, but more slowly than in the first two months of the year amid signs of stabilisation in some sectors.
It fell by 0.6 points in the EU, and by 0.7 points in the euro area, to 60.3 and 64.6, respectively.
The indicators for both regions now stand at their lowest levels since the current series was launched in January 1985.
The fall in the ESI is attributed to the deteriorating sentiment in the industry and services sectors, which fell by the same amount (-2 points) in both regions. In the other sectors, a mixed picture is emerging.
Consumer sentiment stabilised in the EU, but fell by one point in the euro area.
Retail trade increased by two points in the EU and by one point in the euro area, reinforcing the rebound which started in February. Construction in both regions stabilised at the levels seen in February.
Among the largest EU member states, Italy witnessed the most significant decline in sentiment (-4.5 points), while the fall has been more marginal in France and Poland (-1.0), Germany (-0.8) and the UK (-0.4). Economic sentiment recovered slightly in the Netherlands (1.3) and in Spain (0.8).
The financial services confidence indicator - not included in the ESI - improved by one point in the EU but deteriorated by four points in the euro area, reversing the previous month's gain.
Compared to February, managers' expectation of demand for their services worsened in both areas - significantly in the euro area, but to a much lesser extent in the EU.
Friday, April 24, 2009
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