Press Release: May 2006: Business Climate Indicator for the euro area declines slightly

After the upturn in April 2006, the Business Climate Indicator (BCI) for the euro area declined slightly in May. Despite this recent weakening, the BCI remained at a high level suggesting that the pick-up in industrial production growth should continue in the second quarter of 2006. The fall in the BCI was due to a marked deterioration in industry managers' assessment of the production trend observed in recent months, while assessments of total order books and export order books remained broadly stable. Managers were slightly more optimistic regarding the production expectations for the months ahead and the stocks of finished products.