Brussels, 28/07/2011 (Agence Europe) - The Economic Sentiment Indicator (ESI), which translates business confidence on the part of companies and consumers fell in the eurozone in July for the fifth month in a row. The ESI was published on Thursday 28 July by the European Commission and fell to 103.2 points, as opposed to 105.4 points in June. This 2.2 point decline is sharper than expected by the economists and is the lowest point of the past year. In the EU27, the ESI also fell by 2.2 points, to 102.4 points in July.
These unwelcome figures translate a declining confidence in all the different sectors, particularly in industry and services. Industrial orders fell and production prospects were bad, as well as consumer confidence. The decline was significant in Italy (-4.5) and Spain (-2.7). The decline was less steep in the Netherlands (-2.1), Germany (- 1.8), the United Kingdom (-1.4) and France (-0.5).
The ESI in the eurozone in July, which the Commission published separately on Thursday and which translates confidence on the part of business leaders, also fell for the fifth time in a row to 0.45 points as opposed to 0.95 points in June. “The current level of the indicator remains comparatively high, but the steady fall observed since March indicates that euro area industry has entered a phase of growth moderation”, points out the Commission in a press release. It also notes that business leaders are more pessimistic about their order books. (O.L./transl.fl)