In May, the Economic Sentiment Indicator (ESI) decreased further by 1.3 points to 96.7 in the EU and remained unchanged in the euro area at 97.1. In both regions, the ESI stands below its long-term average. Economic sentiment indicator (s.a.)

The decrease in the sentiment indicator for the EU is due to lower confidence in manufacturing and construction and among consumers, while confidence in retail trade improved and remained stable in services. In the euro area, sectoral developments were somewhat different, with confidence remaining stable in manufacturing, decreasing among consumers and improving in services, retail trade and construction.

In May most countries registered a decline in economic sentiment. Among the large Member States, confidence improved markedly in Italy (+3.0), though not enough to bring it above its long-term average, and remained almost stable in Germany (+0.2), while confidence weakened further in the UK (-5.2), France (-3.3), Poland (-1.7) and Spain (-0.9). In France, the ESI dropped below its long-term average for the first time since May 2005, leaving Germany and Poland as the only large Member States where the ESI stays above its long-term average.

The next Business and Consumer Survey is due to be published on 27 June 2008.