Economic activity remained stable in May at the euro area, after the fall of April, reported the private entity of The Conference Board analysis.
The index that makes this entity for the euro area (Coincident Economic Index-CIS-), which measures current economic activity through employment, industrial production, retail trade turnover in manufacturing, stood at 101.9 points in May, according to preliminary calculations.
The index fell 0.4% in April and remained unchanged in March.
Meanwhile, the main index, LEI, anticipating changes in trends in the business cycle in the 17 member countries of the euro and is composed of eight indicators declined for the third consecutive month in May, although more slowly.
The stock prices and business confidence were again the main reasons for the fall, according to chief economist of The Conference Board for the euro area, Jean-Claude Manini,
The indicators that comprise the LEI are the risk premia, economic confidence, business expectations in the services sector, the rate of acquisition in the manufacturing sector, the evolution of Euro-Stoxx-which brings together the largest companies listed on euro-area, permits for residential building construction, orders for capital goods and money flow.
According Manini, the sharp deterioration in confidence suggests that the growth potential has reverted back to negative territory in recent months.
“If it is done quickly to restore confidence in the economy and financial situation in Europe, the economy may experience a deeper and longer contraction than projected today,” he said.
Category: Business News