Thursday, January 27, 2011

Euro Leading Index Reaches 3.5 Year High

The Conference Board announced today that its "Leading Economic Index (LEI) for the Euro Area increased 0.8 percent in December to 107.3, following a 0.6 percent increase in November and 0.2 percent increase in October," which was the highest level in three and-one-half years going back to the summer of 2007 (see chart above). 

Said Jean-Claude Manini, The Conference Board senior economist for Europe: “December brought a further increase in the Euro Area LEI, and all components rose during the latter half of 2010. But, the index remains on a slower growth path than in the prior 18 months, and current conditions, as measured by the Coincident Economic Indicator, remain very weak. Meanwhile, consumer expectations are weakening; particularly when viewed in the context of fiscal consolidation and rising inflation, this is a strong reminder that the Euro Area economy continues to face strong downside risks. The U.S. LEI showed even larger increases over the same two months, but it signals a more volatile growth path.”

Earlier this week, the Conference Board announced that the Leading Economic Index for Germany increased 0.9% in November. 

2 Comments:

At 1/27/2011 3:18 PM, Blogger Buddy R Pacifico said...

This is the headline in the UK based Guardian:

"Germany enjoys strongest economic growth since reunification."

German exports surged 14.2% in 2010with both wages and spending up.

"...the East is less dependant on exports and its economic rebound is therefore slower".

Exports surging, higher wages, increased consumption -- hmmmm.

 
At 1/27/2011 10:53 PM, Blogger Ron H. said...

Don't worry, Buddy, US exports should pick up as the USD continues its decline.

 

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