PwC Luxembourg Monthly Barometer

In cooperation with AGEFI Luxembourg

Economic Confidence Indicator

May 2012

In May, our Barometer indicates that growth has come to a standstill. Indeed, STATEC's business survey results highlighted that Luxembourg CEOs expect the production to level off.

As the European Stability and Growth Pact is being discussed, the industry remains cautious while one of the main European economies was holding presidential elections.

While Christine Lagarde, head of the IMF, Mario Draghi, president of the ECB, and Herman van Rompuy, president of the European Council, are all calling for measures to return to growth, only a strong political will can help move forward. The next few months will be absolutely crucial in setting up a European recovery plan, which is likely to be presented before the European Summit in late June.

PwC Luxembourg Monthly Barometer has been created in cooperation with AGEFI Luxembourg as a simple and practical tool designed to provide a monthly snapshot of the economic climate in Luxembourg.

The Indicator combines the results of STATEC's study of the overall economic climate which provides an outlook for the industrial production in Luxembourg, with the data published by ZEW, a German research institute, on the economic sentiment of analysts and investors regarding the euro area.

The graph below shows the developments in the Economic Confidence Indicator for the past years.

PwC Luxembourg Monthly Barometer (Economic Confidence Indicator)

in cooperation with AGEFI Luxembourg

Heightened uncertainty