As a result, the LEI fell by 4.2% over the six-month period from September 2023 to March 2024, a smaller rate of decline compared to the six-month period from March to September 2023.
The US think tank's Coincident Economic Index (CEI) for the euro zone rose 0.2% in March to 108.3 after being flat in February.
The Conference Board's leading economic index for the euro zone fell 0.4% in March this year to 99.4 after falling 0.6% in February. The research agency's Coincidental Economic Index US research for the region rose 0.2% in March to 108.3 after being flat in February. It expects annual real GDP growth for the region to be 0.6% in year 2024.
The CEI rose 0.3% in the six-month period from September 2023 to March 2024 after falling 0.2% in the previous six-month period, a release from the research organization said.
The LEI provides an early indication of important turning points in the business cycle and the direction of the economy going forward. The CEI provides an indication of the current state of the economy.
“The large negative contribution from yield spreads, combined with weaker consumer expectations, new orders and order volumes pushed the Index lower. With the Index's six-month growth rate still below its long-term trend and due to widespread weakness among its components, the LEI continues to signal the risk of an upcoming recession in the euro area. tank.
“Amid persistent headwinds to economic activity, the Conference Board now forecasts annual real GDP at a modest 0.6%. [gross domestic product] growth by 2024,” he added.
Fiber2 Fashion News Desk (DS)
