Service Providers of the Information Society - Economic Sentiment Among Companies in the Economic Sector Remains Positive
Information EconomyThe economic sentiment among companies in the economic sector service providers of the information society remains positive in the middle of 2011. Neither strong increases nor decreases in the indicators for the business situation or the business expectations for the third quarter of 2011 could be observed. Accordingly, the ZEW-IDI, the economic sentiment indicator for the whole economic sector of service providers of the information society, has increased only slightly by 0.3 points in the second quarter of 2011. It now stands at 62.7 points. This is still significantly above the critical value of 50 points. A ZEW-IDI value above 50 points indicates a better economic sentiment in comparison to the previous quarter. These are the findings of the business survey conducted by the Centre for European Economic Research (ZEW)in Mannheim in cooperation with Creditreform, Neuss. The survey was conducted in June 2011 in the economic sector service providers of the information society.
"The partial indicator of the ZEW-IDI reflecting the assessment of the business situation in the second quarter of 2011 has increased by 2.2 points since the previous quarter and now stands at 60.9 points", explains Miruna Sarbu, researcher at ZEW. However, the partial indicator reflecting the business expectations for the third quarter of 2011 has fallen by 1.7 points and now stands at 64.6 points.
The economic sector service providers of the information society consists of ICT service providers and knowledge intensive service providers. The sentiment indicator for ICT service providers, including software businesses, IT services, ICT specialised trade and telecommunication services, has decreased by 6.5 points in the second quarter of 2011. It now stands at 59.7 points. The partial indicator reflecting the current business situation of the ICT service providers has dropped by 8.3 points to55.6 points. The ICT service provider’s expectations for the third quarter of 2011 have also deteriorated since the previous quarter. The partial indicator reflecting the business expectations for the third quarter of 2011 has fallen by 4.6 point to 64.1 points.
In contrast to the ICT service providers, the economic situation of the knowledge-intensive service providers has improved in the second quarter of 2011. The sentiment indicator for tax consultants, accountants, management consultants, architects, technical consultancy and planning, research and development as well as advertising companies has increased by 10.2 points to 66.5 points. This development stems primarily from an improvement of the partial indicator reflecting the business situation, which has increased significantly: It has risen by 17.0 points to 67.7 points. The business expectations of the knowledge-intensive service providers for the third quarter of 2011 also have slightly improved in comparison to the previous quarter. The respective partial indicator has increased by 2.7 points and now stands at 65.3 points.
For further information please contact
Miruna Sarbu, Phone +49 621/1235-334, E-mail sarbu@zew.de
The ZEW-IDI
The ZEW-IDI is composed of the four components turnover situation, demand situation, turnover expectations and demand expectations (each in comparison with the previous and following quarter, respectively). They are used for the calculations with equal importance. Turnover situation and demand situation form a partial indicator reflecting the business situation. The geometrical mean of the business situation and the business expectations amounts to the value of the ZEW indicator of the service providers of the information society. The sentiment indicator can adopt values between 0 and 100. Values greater than 50 indicate an improved economic sentiment compared to the previous quarter, values smaller than 50 indicate deterioration compared to the previous quarter.
The economic survey conducted by the ZEW/Creditreform
About 700 businesses participate in the quarterly survey. The economic sector service providers of the information society consists of information and communication technology (ICT) service providers (businesses of the sub-sectors software and IT-services, ICT specialized trade and telecommunication services) and knowledge intensive service providers (businesses of the sub-sectors tax consultancy and accounting, business consultancy, architectural offices, technical consultancy and planning, research and development and advertising).
Comment on the projection
To ensure the analyses’ representativity, the ZEW projects the answers of the survey participants with the turnover value of the businesses with regard to the entire economic sector service providers of the information society. The phrasing ‘share of the businesses’ therewith reflects the share of turnovers of the businesses.