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The Conference Board Economics Watch® - European View
- Authors:
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Publication Date:
June 2013
Reduced Financial Tensions Could Accommodate a Cautious Recovery in the Euro Area
- The Conference Board Leading Economic Index® (LEI) for the Euro Area increased slightly in May, its third small gain in the last four months
- Business confidence indicators are continuing to improve, but are not yet strong enough to signal that contraction has ended
- A small rise in household consumption during the first quarter is in line with signs that consumer confidence is improving
- Raising private investment levels remains a barrier to recovery
- Financial stability is a necessary precondition for a sustained Euro Area economic recovery, but is not sufficient
- ECB monetary policy has not been transmitted effectively to lower private rates
- Borrowing conditions for businesses, especially for SMEs in troubled economies, remain poor and are hindering recovery
