Economic sentiment declines in both the EU and the euro area but it remains well above its long-term average. It fell importantly by 2.3 points to 105.1 in the EU and more moderately by 1.1 points to 106.2 in the euro area, marking the second decline in a row in that region. The Economic Sentiment Indicator (ESI) for the EU and the euro area declined in April

The Directorate General for Economic and Financial Affairs (DG ECFIN) of the European Commission conducts regular harmonised surveys for different sectors of the economies in the European Union (EU) and in the applicant countries. They are addressed to representatives of the industry (manufacturing), the services, retail trade and construction sectors, as well as to consumers.

Contrary to the 2010 improvements, the more negative readings of the ESI in the EU reflect a sharp drop in the UK, especially in the services and retail sectors. In both regions, the fall in the ESI stemmed from a decline in confidence in all sectors except construction, where sentiment improved from low level on the back of more favourable weather conditions.

Among the seven largest Members States, confidence in the UK fell the most (-5.1), followed by the Netherlands (-2.0), and Poland (-1.3). The confidence indicator fell less significantly in Italy (-1.0), Germany (-0.9), Spain (-0.9) and France (-0.8). The ESI remains firmly above its long term average only in Germany, France and the Netherlands.

Since May 2010 business surveys data are classified in accordance with an updated version of the Nomenclature of Economic Activities (NACE rev. 2) causing a potential break in series at this date. In previous months, a combination of NACE rev. 1 and rev. 2 has been used.