Economic index raises concerns over recovery

The Conference Board research group's leading economic index (LEI) for the euro zone rose 0.9 per cent in October to 101

The Conference Board research group's leading economic index (LEI) for the euro zone rose 0.9 per cent in October to 101.4, slowing from gains of 1.0 per cent in September and 1.9 per cent in August.

Five of the eight components contributed positively to the index in October but its six-month growth rate slowed slightly, the group said in a statement today.

"The slowing pace of improvement in the LEI for the euro area during the past two months raises questions about the strength and sustainability of the recovery," Jean-Claude Manini, Conference Board senior economist for Europe, said.

"Continued weakness in labour market indicators ... reinforces concerns that the rebound in production may not be sufficient to ensure a lasting expansion of economic activity in the euro area," Mr Manini said.

Reuters