The Conference Board Leading Economic Index (LEI) for the Euro Area increased 1.0 percent in July and now stands at 108.4 (2004=100), after increasing 0.4 percent in both June and May.

"The third consecutive increase in the Euro Area Leading Economic Index signals an improving economic outlook, now that the economy appears to be moving out of recession," says Bert Colijn, Economist for Europe at The Conference Board. "Increasing businesses and consumer confidence continue to boost prospects for continued growth, along with rising stock prices. However, high credit constraints, record-high unemployment, and slowing growth in emerging markets are dampening the ability of the European economy to recover swiftly."

The Conference Board Coincident Economic Index (CEI) for the Euro Area, which measures current economic activity, decreased 0.1 percent in July, according to preliminary estimates. The index now stands at 100.7 (2004 = 100)*. The CEI declined 0.1 percent in June and was unchanged in May.