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U.S. Leading Economic Index rose 0.5%
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The Conference Board Leading Economic Index® (LEI) for the U.S. rose 0.5 percent in December to 93.9 (2004 = 100), following no change in November, and a 0.3 percent increase in October.
The U.S. LEI rose sharply in December, led by a large improvement in initial claims for unemployment insurance and positive contributions from the interest rate spread and the Leading Credit Index™. The increase in the LEI brought its six-month growth rate well above zero, with roughly two-thirds of the components advancing in the last six months. However, consumer expectations and manufacturers' new orders remain weak.
The latest data suggest that a pickup in domestic growth is now more likely, compared to a few months ago. Housing, which has long been a drag, has turned into a positive for growth, and will help improve consumer balance sheets and strengthen consumption. However, for growth to gain more traction we also need to see better performance on new orders and an acceleration in capital spending.
The Conference Board Coincident Economic Index® (CEI) for the U.S. increased 0.2 percent in December to 104.9 (2004 = 100), following a 0.5 percent increase in November, and no change in October.
The Conference Board Lagging Economic Index® (LAG) increased 0.7 percent in December to 117.5 (2004 = 100), following a 0.3 percent increase in November, and a 0.3 percent increase in October.
Posted: January 24, 2013 Thursday 10:00 AM