Press Release: May 2009: Business Climate Indicator continues in May to recover from historical lows

The Business Climate Indicator (BCI) for the euro area again increased in May, albeit at a slower pace than in April. This is the first improvement sustained over two consecutive months since May 2008. The indicator nevertheless remained at a very low level, suggesting that year-on-year industrial production growth will have been negative in April and will remain distinctly subdued in May. The rise in the BCI reflects an improving situation in the underlying components, except for those related to order books. Managers' production expectations and view of the production trend observed in recent months continued to pick up in May. Managers' assessment of stocks of finished goods also showed an improvement on last month's level, though order books and export order books slightly worsened.