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

By  USDR

The Conference Board Leading Economic Index® (LEI) for the Euro Area increased 0.3 percent to 106.5 (2010=100) in May, following a 0.5 percent increase in April and a 0.6 percent increase in  March.

“The Leading Economic Index for the Euro Area increased for a seventh month in a row, pointing to a strengthening outlook for the rest of the year. Gains in the yield spread and consumer expectations, along with decreasing financial stress, were the biggest drivers of the LEI in May, offsetting stock market weakness,” said Ataman Ozyildirim, Director, Business Cycles and Growth Research, at The Conference Board. “While the short-term business cycle factors are boosting the economic outlook for the Euro Area, political volatility remains the main source of risk that could impact the recovery in  Europe.”

The Conference Board Coincident Economic Index® (CEI) for the Euro Area, which measures current economic activity, also increased in May. The index now stands at 100.4* (2010 = 100). The CEI increased 0.1 percent in April and declined 0.1 percent 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 eight components of The Conference Board Leading Economic Index® for the Euro Area  include:

Interest Rate Spread (source: European Central Bank)
Consumer expectation of general economic condition of next 12 months (source: European Commission)
Index of Residential Building Permits Granted (source: Eurostat)
EURO STOXX® Index (source: STOXX Limited)
Systemic Stress Composite Indicator (source: European Central Bank)
Capital Goods New Orders, index (source: European Central Bank)
Markit Manufacturing New Orders Index (source: Markit Economics)
Markit Business Expectations Index, Service (source: Markit Economics)

Series in The Conference Board LEI for the Euro Area that are based on The Conference Board estimates are capital goods new orders and residential building permits. 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).

To view The Conference Board calendar for 2015 indicator  releases:
http://www.conference-board.org/data/

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

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.

Summary Table of Composite Indexes

2015

6-month

Mar

Apr

May

Nov to May

Leading Economic Index (LEI)

105.7

p

106.2

p

106.5

p

  Percent Change

0.6

p

0.5

p

0.3

p

2.9

p

  Diffusion

87.5

87.5

68.8

87.5

Coincident Economic Index (CEI)

100.2

p

100.3

p

100.4

p

  Percent Change

-0.1

p

0.1

p

0.1

p

0.6

p

  Diffusion

37.5

87.5

50.0

100.0

n.a.  Not available     p  Preliminary     r  Revised

Indexes equal 100 in 2010

Source:  The Conference Board               All Rights Reserved

SOURCE The Conference  Board

All opinions expressed on USDR are those of the author and not necessarily those of US Daily Review.