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Europe Daily Bulletin No. 9512
GENERAL NEWS / (eu) eu/economy

Confidence falls and inflation rises in September

Brussels, 28/09/2007 (Agence Europe) - The Economic Sentiment Indicator (ESI) in both the euro area and the EU27 fell in September by more than was expected by analysts. And there was the same nasty surprise with the Business Climate Indicator (BCI). In the euro area, ESI, which reflects the feelings of company bosses and consumers dropped to 107.1 points from 109.9 in August, while in the EU27, it fell from 113.1 points in August to 110.8 in September, according to a report published by the Commission on Friday 28 September. The indicator fell most markedly in Germany and Spain, and in all sectors with the exception of construction. Retailing was the most affected by the fall in confidence. The BCI, which measures confidence within industry, fell from 1.37 in August to 1.09 in September in the euro area. According to a Eurostat flash estimate, the annual level of inflation in the euro area has risen to 2.1% in September. In August, inflation stood at 1.7%. (ol)

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