The Conference Board Leading Economic Index® (LEI) for China increased 0.9 percent in February. The index stands at 282.4 (2004 = 100), following a 0.3 percent increase in January and a 0.4 percent increase in December. Four of the six components contributed positively to the index in February.
"The China Leading Economic Index accelerated in February on the back of strong bank lending.
At the same time, we see that despite high credit creation, the slowdown in current economic activity deepened in the first two months of the year," says Andrew Polk, resident economist at The Conference Board China Center in Beijing. "This suggests that any government intent to support growth more actively in the coming months is unlikely to help much in improving economic conditions."
The Conference Board Coincident Economic Index® (CEI) for China, which measures current economic activity, decreased 0.2 percent in February to 252.8 (2004 = 100), following a 1.2 percent decline in January and a 1.5 percent increase in December. Three of the five components contributed positively to the index in February.
The Conference Board LEI for China aggregates six economic indicators that measure economic activity in China. Each of the LEI components has proven accurate on its own. Aggregating individual indicators into a composite index filters out so-called "noise" to show underlying trends more clearly.
