A confidence indicator is a statistical indicator based on the results from business surveys interrogating enterprises on their current economic situation and their expectations about future developments. Five separate confidence indicators are produced, for industry, construction, services, retail trade and consumers. Each confidence indicator is calculated as the simple arithmetic average of the (seasonally adjusted) balances of positive and negative answers to specific questions, e.g. regarding economic expectations.
In order to be able to track overall economic activity, a broader economic sentiment indicator (ESI) is calculated as a composite indicator of these confidence indicators.
The confidence indicators at the level of the European Union (EU) and the euro area are published monthly by the European Commission.
Further information
- Short-term business statistics and the economic sentiment indicator (background article)