IP/06/1142
Brussels, 31st [ Figures and graphics available in PDF and WORD PROCESSED ]
August 2006: Business Climate Indicator for the euro area falls in August The Business Climate Indicator (BCI) for the euro area declined in August for the second month in a row. Despite this correction and the somewhat weaker growth rate of industrial production in June, both indicators point to buoyant economic activity in the current quarter. The fall in the BCI was due to a marked deterioration in industry managers' assessment of the production expectations for the months ahead, while assessments of the stocks of finished products, total order books, export order books and the production trend observed in recent months remained unchanged. [ Figures and graphics available in PDF and WORD PROCESSED ]
The BCI is based on a factor analysis of the euro area aggregate balances (seasonally adjusted) of five of the monthly questions in the industry survey (only employment and selling-price expectations are excluded).
[ Figures and graphics available in PDF and WORD PROCESSED ]
Full details of the Business Climate Indicator are available on the Europa website:
http://ec.europa.eu/economy_finance/indicators/businessclimate_en.htm
The next BCI Results are due to be published on 29 September 2006.
