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The Conference Board Economics Watch® European View

Economic growth in the Euro Area remained weak (0.2 percent) in the first quarter of 2014, although there was considerable growth diversity, as Germany, Spain, and the United Kingdom outperformed France and Italy. The Conference Board Leading Economic Index® for the Euro Area declined in April, implying that an accelerated recovery is not very likely. Even though consumers are showing confidence, consumption growth continues to disappoint due to a lack of income growth. Investment also remains weak, but improvements in credit conditions might help a recovery over the coming months.

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