Eurozone Business Climate Dives to New Lows
The Eurozone business climate index has taken another hit, falling to -0.23 in August, down from -0.19 in July.
This decline indicates a further softening of business sentiment across the 20-nation currency bloc, raising concerns about the strength of economic recovery in the second half of the year.
The Business Climate Indicator (BCI) is a composite gauge that summarizes the phase of the business cycle in the Eurozone, based on surveys of managers in the industrial sector. It captures assessments of production trends, order books, export orders, and inventories, as well as managers’ expectations for future output.
A negative reading suggests that business conditions are below their long-term average, and the latest drop signals that the industrial sector is losing momentum.