Europe Leading Index:Continued Expansion in 2011
The Conference Board Leading Economic Index (LEI) for the Euro Area increased by 0.7% in November to 114.3, following a 0.3% increase in October and no change in September.
Said Jean-Claude Manini, The Conference Board senior economist for Europe: “The LEI for the Euro Area reaccelerated in November and points to a continued expansion in economic activity during the first half of 2011. But, the strengths have not been very widespread. Downside risks still dominate the outlook, and the planned government budget cuts will increasingly create a drag on growth. The divergence between the LEIs for Germany and Spain is a further reminder that the improvement in economic conditions will remain uneven.”
The Conference Board also reported last week that the Leading Index for Mexico increased sharply in October by 1.5%, following a 0.3% increase in September and a 0.5% increase in August. Except for Spain and Japan, all other 9 LEIs reported by the Conference Board are showing positive signs of future growth (Australia, China, Euro Area, France, Germany, Korea, Mexico, UK and US).