The Conference Board Leading Economic Index for the U.S. increased 0.2 percnt in October to 97.5, following a 0.9 percent increase in September, and a 0.7 percent increase in August.
“The modest rise in the Leading Economic Index in October follows the strong advances recorded in the prior two months, which helps lift the six-month annualized growth rate to 5.1 percent from 3.7 percent in the previous six months,” said Kathy Bostjancic, Director of Macroeconomic Analysis at The Conference Board. “The recent increase in the index supports our forecast that the U.S. economy is poised to grow somewhat faster at 2.3 in 2014 compared to 1.6 percent in 2013. Within the details, the sub-indexes contributing positively to growth are the financial, housing and manufacturing variables. Restraining growth is the ongoing caution of businesses that continue to keep tight reigns on capital expenditures.”
“The U.S. LEI has increased for four consecutive months,” said Ken Goldstein, Economist for The Conference Board. “Overall, the data reflect strengthening conditions in the underlying economy. However, headwinds still persist from the labor market, accompanied by business caution and concern about federal bucget battles. The biggest challenge to date has been relatively weak consumer demand, which continues to be restrained by weak wage growth and slumping confidence.”
The Coincident Economic Index increased 0.2 percent in October to 106.9, following a 0.3 percent increase in September, and a 0.3 percent increase in August.
The Lagging Economic Index increased 0.3 percent in October to 119.7, following a 0.5 percent increase in September and a 0.2 percent increase in August.
Source: The Conference Board
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