The Conference Board Economics Watch^® - European View

Though Financial Conditions Are Improving, Euro Area Economy Remains Too Weak to Emerge from Recession

• The Conference Board Leading Economic Index® (LEI) for the Euro Area increased slightly in April after small declines in March and February
• Business confidence remains weak and current surveys of business activity suggest Euro Area and most countries are still in contraction
• ECB rate cut probably will not do much to help improve borrowing conditions in troubled economies
• Economic contraction and high unemployment rates in many European economies have caused increased discussion about austerity
• The Conference Board’s analysis for evolution of debt-to-GDP ratios in Germany and Spain shows that a sustained improvement in productivity growth can help bring public debt under control over the long term