Brussels, 29 June 2009
The Business Climate Indicator (BCI) for the euro area increased slightly in June. However, the level is still far below the previous historical lows of 1993. This suggests that year-on-year industrial production growth will still have been negative in May and will remain subdued in June.
The rise in the BCI reflects an overall easing, except for conditions related to order books. Managers' production expectations continued to improve in June, and their perception of the production trend observed in recent months increased significantly. Managers' opinion of stocks of finished goods also continued to improve. In contrast, both order books and export order books continued to worsen, reaching new record lows.
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).
Full details of the Business Climate Indicator are available on the Europa website:
The next BCI Resu lts are due to be published on 30 July 2009.