The Conference Board has released its Leading Economic Index for the euro area in July. Despite all the fears and woes that were taking place then, the euro area’s leading indicators rose by 0.3 percentage points to a reading of 107.7. The tick higher in July followed a 0.5 percentage point gain in June and a 0.2 percentage point gain in May.

What the Conference Board has indicated is that the European economy will continue to improve moderately through the final months of the year. Much of this overlaps with the woes that were dominating the headlines out of Greece and a potential exit from the euro.

The Conference Board said:

The improvement in the Leading Economic Index was widespread, with consumer expectations, new orders for manufacturing and the financial components the major contributors to the rise. Business expectations, however, remain weak.

If you break down the reading, the Coincident Economic Index for the euro area rose to 100.4, which measures current economic activity. That reading had decreased 0.1 percentage point in June and increased 0.1 percentage point in May.

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The eight components of the Conference Board Leading Economic Index for the euro area include:

• Interest rate spread (ECB)
• Consumer expectation of general economic condition of next 12 months (EC)
• Index of Residential Building Permits Granted (Eurostat)
• EURO STOXX Index
• Systemic Stress Composite Indicator (ECB)
• Capital goods new orders (ECB)
• Markit Manufacturing New Orders Index (Markit)
• Markit Business Expectations Index, Service (Markit)

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