Business confidence shows strong improvement since mid-2016

The European Commission today published their latest estimates on business confidence for the Euro-area. The release underlines that European business is increasingly confident about economic prospects. In August 2017, the Business Climate Indicator (BCI) increased by 0.05 points to 1.09 - a strong improvement since the beginning of the second half of 2016. Higher confidence went alongside improving quarterly growth rates, which amounted to 0.4% in the 3rd quarter of 2016, 0.6% in the 4th quarter of 2016, 0.5% in the 1st quarter of 2017 and 0.6% in the 2nd quarter of this year. The recent releases on business confidence show that the current growth momentum is likely to carry on into the second half of 2017.

BusinessEurope Director General Markus J. Beyrer commented: “Today’s business confidence data provide further indication that European businesses are increasingly optimistic about future prospects. Europe’s economic recovery is clearly continuing to gather strength.” He also said that to reinforce the recovery and ensure that it is broad-based and long-lasting, EU policy-makers need to continue to work to improve the business environment. “For example: ensuring that labour markets support employment creation, opening markets for business both in the EU and externally, and reducing the tax burden on businesses and labour”.