Euro area LEI drops 0.5% in January: The Conference Board

The Conference Board Leading Economic Index (LEI) for the euro area fell by 0.5 per cent in January 2025, reaching 97.1 (2016=100). This follows a 0.6 per cent decline in December 2024, highlighting persistent economic uncertainty.

Over the six-month period from July 2024 to January 2025, the LEI contracted by 4.1 per cent—an accelerated decline compared to the 3.3 per cent decrease recorded in the previous six-month period (January to July 2024).

Despite the weakening outlook, the Conference Board Coincident Economic Index (CEI), which reflects current economic conditions, saw a slight uptick. The CEI edged up by 0.1 per cent in January 2025 to 109.3, following a stagnant December. Over the past six months, the CEI expanded by 0.6 per cent—three times the 0.2 per cent growth recorded in the prior period.

“The Euro Area LEI continued to fall in January. As in the previous month, all components, save the systemic stress indicator and stock prices, contributed to the decline of the LEI. Weak volume of orders books paired with depressed consumer confidence have weighed on the Index for the past 19 months and showed no sign of improvement in January,” Ian Hu, economic research associate, at The Conference Board, said in a release.

“As such, the annual growth rate, despite becoming less negative in recent months, continues to suggest headwinds to economic growth in 2025 notwithstanding on-going monetary easing by the European Central Bank (ECB). After growing by 0.9% in 2024, The Conference Board projects the Euro Area’s real GDP to remain sluggish at about 1% in 2025,” Ian added.

ALCHEMPro News Desk (HU)