The Conference Board Economics Watch® European View—April 29, 2015

Economic growth in the Euro Area seems to be picking up, but further acceleration remains uncertain. While a possible “Grexit” dominates the news, the European growth outlook is improving on stronger consumer demand. We project 1.4 per cent growth for 2015—a significant acceleration compared to 2014. Stronger industrial production in February could be an early signal that the manufacturing sector might profit from a weaker euro and stronger domestic markets in the coming months. However, export growth remains weak. Lower energy prices have boosted real wages by 0.4 percent in Europe, though nominal wage growth is historically weak and has yet to pick up.