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

In October 2011, the Business Climate Indicator (BCI) for the euro area declined for the eighth month in a row. The steady fall observed since March points to a significant slowdown in industrial production growth.

The drop in the BCI in October was mainly driven by a gloomier assessment of production trends observed in recent months, as well as by increased pessimism about overall order books and export order books. On the other hand, production expectations deteriorated only marginally further compared to the strong decreases registered in the previous two months. Assessments of stocks continued to increase from historic lows.