European Commission - Press release
Brussels, 28 July 2011 - The Business Climate Indicator (BCI) for the euro area fell for the fifth month in a row in July 2011. The current level of the indicator remains comparatively high, but the steady fall observed since March indicates that euro-area industry has entered a phase of growth moderation.
The drop in the BCI in July reflects primarily weakening production expectations and worsening assessments of production trends observed in recent months. These developments went along with managers being more pessimistic about overall order books and export order books. Appraisal of stocks continued to increase from historic 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 Results are due to be published on 30 August 2011.