Financial Stabilization and Rising Confidence May End Contraction in Euro Area

• The Conference Board Leading Economic Index® (LEI) for the Euro Area increased in June, its fifth gain in the past six months
• Business and consumer survey results suggest that the Euro Area could achieve modest third-quarter growth
• This somewhat better outlook is connected to a stabilizing financial environment, which must be maintained to create conditions for recovery
• Still, investment prospects remain poor due to tight credit conditions and limited upside growth potential
• The weakness of the global economy, especially in emerging markets, is constraining recovery