31/03/2011
By Matt Ritchie
Economic sentiment is stable in the EU, though has declined slightly in the euro area, according to the European Commission’s latest Business and Consumer Survey.
Among the seven largest member states, Poland (-3.1 points), Spain (-3.0) and Germany (-0.7) reported decreases, while the Netherlands (+3.1), the UK (+2.7) and France (+0.9) improved. Italy remained broadly stable, up 0.1 points. The Economic Sentiment Indicator is above its long-term average in five of the seven largest member states, the Commission said, as Poland went back to just below its long-term average while Spain remained well below it.
Meanwhile, sentiment in the industry increased by 0.6 points in the EU, and remained “broadly unchanged” in the euro area. According to the survey, the difference between the two regions is mainly explained by a "strong increase" in the UK, up 3.0 points.
Production expectations decreased both in the EU and the euro area, despite improvement in the assessment of the level of order books and an increasing number of managers considering their stocks as insufficient.
“Managers were also slightly more pessimistic about their export order books,” the report said.
Sentiment in services rose in the EU, up 0.6 points, though fell 0.4 points in the euro area.
According to the survey, managers were more positive about expected demand but more pessimistic about demand observed in the past months. Sentiment in construction decreased in both in the EU and the euro area, down 1.6 points and 0.8 points respectively, partly offsetting the improvement registered in February. The Commission said the indicator remains at very low levels in both regions.
Confidence in financial services – which are not included in the Economic Sentiment Indicator – decreased significantly in both the EU and the euro area - down 2.1 points and 5.7 points respectively. The Commission attributed the decline largely to a weaker assessment of past and expected demand evolution.
To access the report, click here
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