28-Jan-2011 9:01 AM

Euro area's consumer expectations weakening

Euro area's Leading Economic Index (LEI) increased (27-Jan-2011) 0.8% in Dec-2010 to 107.3 (2004=100), following a 0.6% increase in Nov-2010 and 0.2% increase in Oct-2010 according to The Conference Board. The Coincident Economic Index (CEI) for the euro area, which measures current economic activity, remained unchanged in Dec-2010. The index stands at 102.6 (2004=100). The CEI increased 0.1% in Nov-2010 following an increase of 0.2% in Oct-2010. [more]

The Conference Board: “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 CEI, 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 US LEI showed even larger increases over the same two months, but it signals a more volatile growth path,” Jean-Claude Manini, senior economist for Europe. Source: Company Statement, 27-Jan-2011.