Press Release: April 2012: Economic sentiment flat in the EU and down in the euro area

The Economic Sentiment Indicator (ESI) remained stable in April in the EU at 93.2. In the euro area it decreased significantly by 1.7 points (to 92.8), thereby offsetting the gains recorded over the first quarter of 2012.

The decline in the euro area was mainly driven by weakening confidence in the industry and services sectors. Confidence improved only in the retail sector. The more positive reading of the ESI in the EU reflects a strong improvement in the UK. In both regions, the ESI remains well below its long term average. Most Member States witnessed a drop in economic sentiment. Among the seven largest Members States, the ESI registered the sharpest fall in Italy (-5.7), followed by Poland (-2.3), Spain (-1.8) and Germany (-1.0). The indicator remained broadly unchanged in France (-0.4) and improved in the Netherlands (+1.2) and, particularly, in the UK (+4.2). The ESI remains above its long-term average only in Germany.