The Conference Board Leading Economic Index® (LEI) for the Euro Area Declined in May

BRUSSELS, June 24, 2011 /PRNewswire/ -- The Conference Board Leading Economic Index® (LEI) for the Euro Area decreased 0.2 percent in May to 108.8 (2004 = 100), following a 0.2 percent increase in April and a 0.5 percent decline in March.

Said Jean-Claude Manini, The Conference Board Senior Economist for Europe: "The LEI for the Euro Area fell for a second time in three months in May. This significant loss of momentum is partially due to temporary factors such as disruptions in the global supply chain that resulted from the March 11 earthquake in Japan. Growth may be subdued in the very near term, but economic activity should continue to expand through the end of the year. The unfolding debt crisis is a reminder of persisting downside risks, but core economies – particularly in Germany – will continue to benefit from the accommodative monetary policy."

The Conference Board Coincident Economic Index® (CEI) for the Euro Area, which measures current economic activity, declined 0.1 percent in May. The index stands at 103.0 (2004 = 100) according to preliminary estimates*. The CEI increased 0.3 percent in April, following a 0.2 percent decline in March.

About The Conference Board Leading Economic Index® (LEI) for the Euro Area

The Conference Board Leading Economic Index® for the Euro Area was launched in January 2009. Plotted back to 1987, this index has successfully signaled turning points in the business cycle of the bloc of countries that now constitute the Euro Area, defined by the common currency zone.

The Conference Board currently produces leading economic indexes for ten other individual countries, including Australia, China, France, Germany, Japan, Korea, Mexico, Spain, the U.K. and the U.S.

The eight components of The Conference Board Leading Economic Index® for the Euro Area include:

Economic Sentiment Index (source: European Commission DG-ECFIN)
Index of Residential Building Permits Granted (source: Eurostat)
Index of Capital Goods New Orders (source: Eurostat)
EURO STOXX® Index (source: STOXX Limited)
Money Supply (M2) (source: European Central Bank)
Interest Rate Spread (source: ECB)
Eurozone Manufacturing Purchasing Managers' Index (source: Markit Economics)
Eurozone Service Sector Future Business Activity Expectations Index (source: Markit Economics)

To view the webpage, which includes a pdf of the press release and technical notes:

http://www.conference-board.org/data/bcicountry.cfm?cid=10

To view The Conference Board calendar of 2011 indicator releases:

http://www.conference-board.org/data/

* Series in The Conference Board LEI for the Euro Area that are based on The Conference Board estimates are real money supply, residential building permits, and new orders of capital goods. All series in The Conference Board CEI for the Euro Area are based on The Conference Board estimates (employment, industrial production, retail trade, and manufacturing turnover).

About The Conference Board

The Conference Board is a global, independent business membership and research association working in the public interest. Our mission is unique: To provide the world's leading organizations with the practical knowledge they need to improve their performance and better serve society. The Conference Board is a non-advocacy, not-for-profit entity holding 501 (c) (3) tax-exempt status in the United States.

SOURCE The Conference Board