The degree of confidence of industrial enterprises in the ongoing economic policy of the European Union and their attitude to external factors is measured by the Directorate for Economic and Financial Affairs using the Industrial Confidence Indicator (ICI) index.
Calculation formula the indicator is an arithmetic mean found from the answers of top managers of enterprises to evaluation questions (relative to the previous period):
- The general state of the company
- The situation in the global and national economy over the past period, as well as future expectations
- Investment and capital investment opportunities
- Current and future product orders
- Volume of output and stocks of finished products
The survey is conducted for all small, medium and large enterprises of the industrial sector – the answers are collected according to the templates: better-worse, yes-no, bad-good. The indicator is calculated separately by sectors:
- Service companies
- Heavy and light industry
The data are summarized and calculated in relative units to the basis of 2002 for each of the 28 EU countries. The process of unification of calculations was launched in 1993, the index covers enterprises that have agreed to participate in trust statistics on a voluntary basis with surveys.
Frequency, time and format of publication of Industrial Confidence Indicator
The index is published by the Department of the European Commission in the last week of each month. Exit time news – 9: 00 GMT (12: 00 Moscow time), format-relative units.
The impact of the Industrial Confidence Indicator on the Forex currency market
The enterprise confidence index is a subjective indicator of business sentiment, which is also determined by indicators of economic sentiment, business climate, business confidence, etc. Traders pay more attention to them, so at the time of the publication of the ICI, there are no strong movements on the European currency, and the significance of the index according to the three-point system of economic calendar - defined as a unit.
Investors pay attention to the indicator as a leading indicator of future capital investments in fixed assets, which industrialists have a specific long-term nature. The detected decline in sentiment may turn into a" failure " of GDP values in the future.