Press Release: June 2011: Business Climate Indicator down further in the euro area

The Business Climate Indicator (BCI) for the euro area fell for the fourth month in a row in June 2011. The current level of the indicator remains very high, but the consecutive drops observed may suggest that euro-area industry has entered a phase of growth moderation. The drop in the BCI reflects weakening production expectations, export order books and managers' employment expectations. By contrast, managers became more optimistic about overall order books, while their assessments of production trends observed in recent months remained broadly unchanged. Appraisal of stocks continued to rebound from historic lows.