The Economic Sentiment Indicator (ESI) for the euro area rose again in August, increasing slightly by 0.6 points to 111.9, its highest level in more than 10 years. The indicator for the EU remained broadly stable (-0.3 points to 111.9), just below its 10-year high of July. The figures were released on 30 August by Eurostat, the EU statistical office. The increase of the ESI in the euro area resulted from improved confidence in industry and services, partly offset by marked decreases registered in the retail trade and construction sectors, while confidence among consumers remained broadly unchanged. The ESI increased in three of the five largest euro-area economies, namely in Italy (+3.6), France (+1.7) and Spain (+1.4), while it eased in Germany (-0.6) and the Netherlands (-0.9). The slight downward correction of the ESI in the EU (-0.3) was mainly due to worsening sentiment in the largest non-euro area EU economy, the UK (-3.6); sentiment in Poland remained broadly unchanged (-0.2). In August 2017, the Business Climate Indicator (BCI) for the euro area increased slightly (+0.05 points to +1.09). Managers' production expectations increased markedly. To a lesser extent, also their appraisals of the stocks of finished products and past production improved. By contrast, managers' views on overall order books and, in particular, export order books deteriorated.