Press Release: January 2007: Business Climate Indicator for the euro area declines

After recording an all-time high in December 2006, the Business Climate Indicator (BCI) for the euro area declined in January 2007. The gap between the indicator and industrial production has widened in recent months, following the deceleration in industrial production growth recorded between September and November 2006. However, the still high value of the indicator signals solid industrial production growth in the beginning of 2007. The fall in the BCI results from industry managers' less optimistic assessment of the production trend observed in recent months, total order books and export order books, as well as of their stocks of finished products. At the same time, managers' production expectations for the months ahead improved somewhat.