empty
 
 

2018.09.2010:31:00UTC+00U.S. Leading Economic Index Climbs Slightly Less Than Expected In August

Indicating the U.S. economy will continue expanding through 2018, the Conference Board released a report on Thursday showing a continued increase by its index of leading economic indicators in the month of August.

The Conference Board said its leading economic index rose by 0.4 percent in August after climbing by an upwardly revised 0.7 percent in July.

Economists had expected the index to advance by 0.5 percent compared to the 0.6 percent increase originally reported for the previous month.

"The leading indicators are consistent with a solid growth scenario in the second half of 2018 and at this stage of a maturing business cycle in the U.S., it doesn't get much better than this," said Ataman Ozyildirim, Director of Business Cycles and Growth Research at the Conference Board.

He added, "The strengths among the LEI's components were very widespread, further supporting an outlook of above 3.0 percent growth for the remainder of 2018."

However, Ozyildirim noted the leading index's growth trend has moderated since the start of the year and said industrial companies more sensitive to the business cycle should be on the lookout for a possible moderation in economic growth next year.

The continued increase by the leading index reflected positive contributions from seven of the ten indicators, including the ISM New Orders Index, the Leading Credit Index, the interest rate spread, and stock prices.

Negative contributions from building permits, average weekly manufacturing hours and manufacturers' new orders for non-defense capital goods excluding aircraft limited the upside for the index.

The report also said the coincident economic index edged up by 0.2 percent in August, matching the uptick seen in July. All four indicators that make up the index increased in August.

The lagging economic index also rose by 0.2 percent in August after dipping by 0.2 percent in July, reflecting positive contributions from the average duration of unemployment and the ratio of consumer installment credit outstanding to personal income.

  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS


Can't speak right now?
Ask your question in the chat.
Widget callback