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Composite business climate indicator

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Definition

The composite business climate indicator summarises the mood of the European short-term economic surveys: the higher it is, the more positive the view industrialists have of the economic outlook.
This composite indicator is calculated by factor analysis. This technique can summarise the concurrent trends of several variables whose movements are closely correlated. Changes in the composite indicator therefore provide a relevant insight into the economic situation, influencing all the balances of opinion in the economic outlook surveys.