April 04, 2022 16:15 GMT
- Euro leading indicators have been fading in the past two months following the Ukraine invasion.
- The 19-nation bloc economy is currently being challenged by higher energy prices and tightening lending conditions.
- The chart below shows that the IFO Business Expectations survey has historically acted a strong 4M leading economic indicator of Euro industrial production (proxy for real economic activity).
- With the IFO survey falling to its lowest level since May 2020, recession risks have been surging.