U.S. leading economic indicators rose in June

23 july 2018

An economic index that measures U.S. business trends rose in June following stagnation in May.

The Conference Board Leading Economic Index rose 0.5% in June to 109.8. Economists polled by The Wall Street Journal expected a 0.4% gain in the index.

Comprising 10 factors including initial claims for jobless benefits, factory orders and the S&P 500’s price change, the index is intended to signal swings in the business cycle and to smooth out some of the volatility of individual indicators.

“The U.S. LEI increased in June, pointing to continuing solid growth in the U.S. economy,” said Ataman Ozyildirim, Director of Business Cycles and Growth Research at The Conference Board. “The widespread growth in leading indicators, with the exception of housing permits which declined once again, does not suggest any considerable growth slowdown in the short-term.”

The board’s coincident index, designed to reflect current economic conditions, rose 0.3% in June from the prior month. The lagging index also increased by 0.3%.

Source: THE WALL STREET JOURNAL