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Fitch Ratings says the rating outlook for the UK life insurance sector remains stable, indicating that a vast majority of UK life insurer ratings are likely to be affirmed over the next 12-24 months.

Fitch Ratings says that although it is more cautious about European car manufacturers' sales and performance in 2012, the agency believes that a recession-like scenario, such as in H208-H109, is unlikely for these groups in 2012.

The Conference Board Leading Economic Index®(LEI) for the Euro Area declined by 1.4 percent in August to 107.1 (2004 = 100), following a 0.1 percent increase in July and a 0.2 percent decrease in June.

The Conference Board Leading Economic Index® (LEI) for Germany decreased 0.3 percent and The Conference Board Coincident Economic Index® (CEI) increased 0.4 percent in July.

In July 2011 compared with June 2011, the euro area (EA17) industrial new orders index fell by 2.1%. In June the index dropped by 1.2%. In the EU27 new orders decreased by 0.8% in July 2011, after a fall of 0.8% also in June. Excluding ships, railway & aerospace equipment, for which changes tend to be more volatile, industrial new orders rose by 1.4% in the euro area and by 0.9% in the EU27.

The Conference Board Leading Economic Index® (LEI) for France declined 0.2 percent and The Conference Board Coincident Economic Index® (CEI) increased 0.1 percent in July.

In the construction sector, seasonally adjusted production rose by 1.4% in the euro area (EA17) and by 0.3% in the EU27 in July 2011, compared with the previous month. In June, production decreased by 1.3% in the euro area and by 1.1% in the EU27.

In the last three months to July 2011, manufacturing production was 4.5% higher than a year ago, but was almost unchanged compared to the first quarter. Manufacturing production in recent months has been affected by supply disruptions stemming from the Japanese tsunami. Manufacturing output is now some 14% higher than its trough in early 2009 and still 8% below its peak in early 2008.

The first estimate for euro area (EA17) trade with the rest of the world in July 2011 gave a 4.3 bn euro surplus, compared with +4.7 bn euro in July 2010. The June 2011 balance was +0.1 bn, compared with +0.4 bn in June 2010. In July 2011 compared with June 2011, seasonally adjusted exports rose by 2.0% and imports by 1.9%.

Economic growth in the EU is slowing down. After growing strongly in the first quarter of 2011, GDP expanded less in the second quarter. GDP growth is now expected to remain subdued in the second half of the year, coming close to standstill at year-end. The soft patch predicted in the spring forecast is now likely to deepen but will not result in a double dip. On account of the stronger-than-expected performance in the first quarter, annual growth is still projected at 1.6% in the euro area and 1.7% in the EU. However, growth forecasts for the second half of the year have been revised down considerably, by ½ percentage point for the euro area as well as the EU compared to the Commission's spring forecast. Moreover, the current outlook is uncertain, and the balance of risks to this forecast is to the downside.