Euro area's LEI falls again in May; CEI holds steady: TCB

The Conference Board (TCB) Leading Economic Index (LEI) for the euro area declined by 0.2 per cent in May 2025 to 99.7 (2016=100), following a sharper 0.9 per cent fall in April. Over the six-month period from November 2024 to May 2025, the LEI dropped by 2.8 per cent—an improvement compared to the 3.5 per cent contraction in the preceding six months.

“All non-financial components, especially consumer confidence and business expectations in the service and manufacturing sectors, continued to weigh on the Index. Its negative six-month and annual growth rates eased a little but widespread weakness among LEI’s components continued to point to economic headwinds ahead,” said Stephanie Guichard, senior economist, at The Conference Board.

Meanwhile, the Coincident Economic Index (CEI), which tracks current economic conditions, remained unchanged at 109.9 in May after a 0.1 per cent dip in April. The CEI posted a 0.5 per cent gain over the past six months, matching the pace of growth recorded between May and November 2024, TCB said in a release.

“Despite the stronger than expected GDP growth in Q1 2025, The Conference Board continues to forecast a deceleration in the euro area over the coming quarters and projects GDP growth 1 per cent in 2025 after 0.9 per cent in 2024.” Guichard added.

ALCHEMPro News Desk (HU)