The employment expectations indicator (EEI) remained broadly stable in both areas.

Contrary to the ESI, the EEI scored above its long-term average, the Commission’s business and consumer survey results for February this year revealed.

In the EU, the mild ESI decline was due to lower confidence among services, retail trade and construction managers, while confidence remained broadly stable in industry and increased slightly among consumers.

Amongst the largest EU economies, the ESI deteriorated markedly in Italy (minus 1.6) and slightly in Germany (minus 0.6) and Poland (minus 0.5), while it improved strongly in the Netherlands (1.7) and remained broadly stable in France (minus 0.3) and Spain (minus 0.2).

Industry confidence remained broadly stable (minus 0.2), as the stocks of finished products were increasingly assessed as too large or above normal, indicating lower demand, while managers’ production expectations improved.

Managers’ assessment of the current level of overall order books remained broadly stable.

Consumer confidence improved slightly (0.4), thanks to consumers’ less negative views regarding their household’s past financial situation and their intentions to make major purchases, which were partly offset by lower expectations about the general economic situation in their country.

Consumers’ expectations about their household’s financial situation remained broadly stable.

Retail trade confidence declined (minus 1) due to a marked decline in managers' assessment of the past business situation and a slightly worse assessment of the adequacy of the volume of stocks. Retailers' views on the future business situation remained broadly stable.

The Commission’s employment expectations indicator remained unchanged above its long-term average, reflecting lower employment plans among industry, services and construction managers, counterbalanced by markedly improved employment plans in retail trade.

Consumers’ unemployment expectations, which are not included in the headline indicator, improved.

Selling price expectations decreased in all four business sectors. The drop was marked in retail trade, while very mild in industry.

The Commission’s economic uncertainty indicator (EUI) decreased in February. Managers’ uncertainty about their future business situation in industry, services, and retail trade decreased.

Fibre2Fashion News Desk (DS)