Progress on Financial Integration Does not Result in Improved Outlook for Euro Area

• The Conference Board Leading Economic Index^® (LEI) for the Euro Area increased in November and its six-month growth rate returned to positive territory
• Some measures of business and consumer confidence have improved recently, but not by enough to suggest Euro Area economic contraction has ended
• Business is reluctant to make long-term commitments without confidence in recovery and understanding of future policy environment
• An agreement on the structure of a single supervisory mechanism for Euro Area banks will help increase financial stability but has not yet altered the 2013 growth outlook