OREANDA-NEWS. September 07, 2010. The economic sentiment indicator (ESI) was in Estonia's case 106.5 points in August, marking an improvement of 2.3 points over July, the Estonian Institute of Economic Research said.

The ESI index for Latvia, 99.4 points, was 0.2 points hight than in July, whereas the index for Lithuania, at 99.2 points, was up exactly by as much as the Estonian index or by 2.3 points, figures published by the European Commission's Directorate-General for Economic and Financial Affairs show.

For the whole European Union the indicator was up 0.6 points month on month at 102.7 points.

By sector, and based on seasonally adjusted data, business confidence was three points higher than in July in industry, five points higher in the service sector and two points higher in construction in Estonia. The consumer confidence indicator likewise was two points higher, whereas the retail confidence indicator was down two points.

The highest ESI values in the EU were reported in Sweden - 115.4, and Germany - 111.2. Of Estonia's top trade partners, in Finland the value of the indicator rose 1.4 points during the month to 106.9 points while in Sweden it deteriorated by 0.4 of a point.

The economic sentiment indicator is composed of the industrial confidence indicator (40 percent), the service confidence indicator (30 percent), the consumer confidence indicator (20 percent), the construction confidence indicator (5 percent), and the retail trade confidence indicator (5 percent). Its long term average, for the years 1990-2009, equals 100.

The European Commission said in the release bringing the results of the business and consumer survey that after a surge in July, the ESI continued to improve in both the EU and the euro area, albeit at a slower pace. It rose to 102.7, up by 0.6 of a point, in the EU, and to 101.8, up by 0.7 of a point, in the euro area.

Among the largest member states, the UK registered the most significant gain, 1.5 points, followed by Germany with a gain of 1.1 points. Improvements were less pronounced in Spain, plus 0.9 of a point, and in France, plus 0.4 of a point. In contrast, sentiment deteriorated in Italy, minus 0.9 of a point, Poland, minus 0.9 of a point, and the Netherlands, minus 2.1 points.

Sentiment in industry improved by 1 point in the EU and remained broadly unchanged in the euro area.

Confidence among consumers improved markedly, plus 3 points, in both EU and euro area. Widely felt optimism about the general economic situation as well as further considerable easing of unemployment fears set the tone. Confidence indicator in services decreased by 1 point in the EU and improved by 1 point in the euro area.