Recession risk is the top hot-button issue for CEOs in Europe, and increasing numbers of consumers in Germany, Italy, and Spain believe their country is in recession. Yet, The Conference Board Leading Economic Index®(LEI) for the Euro Area continues to signal that downside risks are confined to the manufacturing sector. Global growth, which is already recovering driven by stronger activity in emerging markets and in the US, should support European growth. Structural issues prevent the recovery from materializing in the Euro Area, yet some sentiment indicators provide room for optimism.