Key eurozone indicators slip

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Berlin - Two key indicators of the mood about the economy in the eurozone fell this month, EU statisticians said Friday.

The Business Climate Indicator decreased 0.14 points to 0.22, statisticians said, with executives gloomier about all the five topics on which they are regularly surveyed.

The European Commission's Economic Sentiment Indicator (ESI), which surveys consumers as well as business leaders, slipped back to its April level after a spike in May, falling 0.6 points to 102.

The commission attributed the drop to the deterioration of confidence in industry and construction and, to a lesser extent, a slippage in consumer confidence.

The May ESI had been the highest in three years.

The fall in both indices is a reminder of how the eurozone is still moving at two speeds with nations such as Germany scoring economic growth that is the envy of neighbours whereas France is stuck in an economic malaise.

But the commission data adds to worrying signs from other surveys that German industrial leaders are no longer so upbeat about their future either even though German consumers, who are usually behind the curve, are still eager to spend.

The data showed the ESI eased in Germany by 1.3 points, more than the fall of 1.2 in France or of 1 in Italy.

The surveys were released after the European Central Bank cut interest rates this month in a bid to revive overall growth in the 18-nation eurozone. - Sapa-dpa

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