Press Release: August 2008: Business Climate Indicator for the euro area continues to decline in August

After a fall below its long-term average in July, the Business Climate Indicator (BCI) for the euro area decreased again in August. The low level of the indicator suggests that industrial activity remains subdued.

Four out of five underlying components of the BCI declined. Industrial managers' production expectations deteriorated most, but their assessment of stocks of finished products, total order books, and export order books also declined. Their assessment of production trend observed in recent months was the only component to improve.