31-Aug-2010 10:43 AM

European economic confidence highest in two years

European Commission stated (30-Aug-2010) the European Business Climate Indicator remained broadly unchanged in Aug-2010, after the jump observed in Jul-2010. The level of the indicator suggests that economic activity in industry will continue to recover in the coming months, although it has still some way to go to reach pre-crisis levels.

The EC added (30-Aug-2010) that the European Economic Sentiment Indicator (ESI) continued to improve in both the EU and the euro area, albeit at a slower pace. It rose to 102.7 (+0.6 of a point) in the EU and to 101.8 (+0.7 of a point) in the euro area, reaching the highest level since Mar-2008. In both the EU and the euro area the ESI is above its long-term average. Among the largest EU Member States, the UK registered the most significant gain (+1.5), followed by Germany (+1.1) which remains in the lead. Improvements were less pronounced in Spain (+0.9) and in France (+0.4). In contrast, sentiment deteriorated in Italy (-0.9), Poland (-0.9) and even more so in the Netherlands (-2.1). [more - European Business Climate Indicator] [more - European Economic Sentiment Indicator]