Global Biz

Eurozone economic confidence drops in May

(Xinhua)
Updated: 2011-05-27 20:10

BRUSSELS - Economic confidence in the eurozone dropped slightly in May while remained broadly unchanged in the 27-member European Union (EU), the European Commission said on Friday.

The economic sentiment indicator (ESI) for the 17-nation bloc sharing the euro fell by 0.6 points to 105.5, while the monthly indicator, based on business and consumer surveys, remained at 105.4 in the EU.

The surveys are conducted in different sectors of the economy, namely industry, services, construction and retail trade as well as among consumers.

According to the surveys, confidence in industry decreased by 1.7 points in both the eurozone and the EU due to a drop in firm's production expectations and a worsening assessment of the level of order books.

But confidence among consumers increased by 1.8 and 3.2 points respectively in the eurozone and the EU, reflecting optimism about the future general economic situation and decreasing unemployment fears, the European Commission said.

Among the seven largest economies, confidence in Britain increased the most, up by 2.6 points, while Germany dips by 0.1 point.

Meanwhile, the business climate indicator (BCI) for the euro zone in May fell for the third month in a row, the commission said in a separate survey.

Although the current level of the indicators remains very high, the Commission said that the drops over the past three months may suggest end of the acceleration phase of the recovery in industry.