| July 2010: Economic Sentiment Indicator edges up -continued | |||||
| Sentiment in industry, which increased by 2 points in both regions, was the main contributor to the overall improvement. Most respondents in this sector reported substantial improvements in their order books. However, managers were cautious on their production expectations. The quarterly manufacturing survey indicates an increase in capacity utilisation. It now stands at about 77% in both the EU and the euro area, though still below the long term average (81%).
As indicated in the flash estimate released earlier, confidence among consumers regained momentum (+3 in the euro area and +1 in the EU). More optimism about the general economic situation and very significant easing unemployment fears in Germany contributed to the overall improvement. Confidence in services improved by 2 points in the EU and the euro area, driven by brighter assessments of demand and the business situation over the past 3 months. Sentiment in the retail sector increased by 2 points in the euro area and by 4 points in the EU, mainly owing to upbeat business expectations in the UK and in Germany. Sentiment in construction remained broadly unchanged in both regions. |
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| Source: Europa | |||||