Press Release: February 2009: Business Climate Indicator declines further in February

The Business Climate Indicator (BCI) for the euro area fell significantly in February to yet another low, reaching its lowest point since January 1985. It confirms the expectation that the outcome of the year-on-year industrial production growth for January will be markedly negative, following on from the sharp fall already recorded in December 2008. It also suggests that annual industrial production growth will remain clearly negative in February 2009. The drop in the BCI reflects a general deterioration in most of its underlying components. Managers' assessment of the current overall order books and export order books is increasingly negative. Managers also reported a sharp fall in the production trend observed in recent months, while the stocks of finished goods stabilised – though at a very high level – and production expectations remained broadly stable.