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Euro zone leading economic index up 1.5 pct in June

Published 07/27/2009, 04:08 AM
Updated 07/27/2009, 04:24 AM

BRUSSELS, July 27 (Reuters) - The Conference Board research group's leading economic index (LEI) for the euro zone rose 1.5 percent to 95.9 points in June, suggesting the currency area's economy may be bottoming out.

But the gain in the indicator -- which aggregates eight other indexes to measure economic activity -- was less pronounced than its increases of 1.7 percent in May and 1.6 percent in April, the group said in a statement on Monday.

"The leading economic index ... has grown rapidly in recent months amidst widespread strength among its components, just like the LEIs for Germany and France," said Jean-Claude Manini, the Conference Board's senior economist for Europe.

"Should these trends continue, a recovery in economic activity -- albeit a slow one -- may begin before the year ends," Manini said.

The index, which indicates economic development up to six months ahead, aggregates eight economic indicators that measure activity in the euro area as a whole.

The index components include the European Commission's economic sentiment index, Eurostat's index of residential building permits granted and index of capital goods new orders, and the Dow Jones EURO STOXX Index.

It also includes European Central Bank money supply data and interest rate spreads as well as the euro zone Manufacturing Purchasing Managers' Index from Markit Economics and its euro zone Service Sector Future Business Activity Expectations Index. (Reporting by Dale Hudson; Editing by Philip Blenkinsop)

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