December 2006: Business Climate Indicator for the euro area reaches an all-time high

The Business Climate Indicator (BCI) for the euro area increased again in December, to record its highest level ever. This points to sustained industrial production growth in the fourth quarter of 2006, in line with the slight increase recorded in October. The increase of the BCI results from improvements in industry managers' assessment of the production trend observed in recent months and of total order books, as well as of export order books and stocks of finished products. By contrast, their production expectations for the months ahead became less optimistic in December.

[ 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 31 January 2007.