The Conference Board Leading Economic Index (LEI) for the Euro Area decreased 0.2 percent in October and now stands at 104.9 (2004=100), after decreasing 0.3 percent in September and increasing 0.5 percent in August.

"The outlook for the Euro Area economy remains weak as the Euro Area LEI declined again in October. However, the six-month growth rate of the LEI has become less negative, pointing to a smaller chance of a deep contraction," says Bert Colijn, European Economist with The Conference Board. "Still, positive growth in economic activity in the near term has not become more likely. Business and consumer confidence indicators have been dragging the LEI lower, illustrating that weakness in the economy remains widespread. The increased stabilization of the Euro Area financial system has not yet translated into greater confidence in the non-financial economy. High unemployment, austerity measures in many countries, and continued uncertainty about the future of the monetary union are holding back the recovery."

The Conference Board Coincident Economic Index (CEI) for the Euro Area, which measures current economic activity, remained unchanged in October. The index now stands at 102.2 (2004 = 100) according to preliminary estimates*. The CEI decreased 0.2 percent in September and increased 0.2 percent in August.