The Conference Board Leading Economic Indexfor the Euro Area increased 0.3 percent in July to 108.8 (2004 = 100), following a 0.1 percent decrease in June and a 0.1 percent decrease in May.

SaidJean-Claude Manini, The Conference Board Senior Economist forEurope: "July's pickup of the LEI for the Euro Area is mostly driven by the contribution of the interest rate spread and real money supply, just as inthe United Statesduring the same month. But the overall increase in the LEI was too small to counterbalance the loss of momentum in the leading indicators in the first half of 2011. A continued modest expansion of economic activity remains the most likely scenario for the second half of the year. However, tighter financial conditions and a new round of budget cuts significantly increase the downside risks. As policy options to support growth are shrinking, the main challenge will be to avoid policy mistakes."

The Conference Board Coincident Economic Indexfor the Euro Area, which measures current economic activity, increased 0.1 percent in July. The index stands at 102.8 (2004 = 100) according to preliminary estimates*. The CEI decreased 0.3 percent in June after remaining unchanged in May.