Fifth Consecutive Increase; Economy May Accelerate in Second Half of the Year
The Conference Board Leading Economic Index® (LEI) for the U.S. increased 0.3 percent in June to 102.2 (2004 = 100), following a 0.7 percent increase in May, and a 0.3 percent increase in April.
"Broad-based increases in the LEI over the last six months signal an economy that is expanding in the near term and may even somewhat accelerate in the second half," said Ataman Ozyildirim, Economist at The Conference Board. "Housing permits, the weakest indicator during this period, reflects some risk to this improving outlook. But favorable financial conditions, generally positive trends in the labor markets and the outlook for new orders in manufacturing have offset the housing market weakness over the past six months."
"The CEI shows the pace of economic activity continued to expand moderately through June," said Ken Goldstein, Economist at The Conference Board. "Stronger consumer demand driven by sustained job gains and improving confidence remains the main source of improvement for the U.S. economy. In addition to a stronger housing market, more business investment could also provide an upside to the overall economy."
The Conference Board Coincident Economic Index® (CEI) for the U.S. increased 0.2 percent in June to 109.2 (2004 = 100), following a 0.3 percent increase in May, and a 0.2 percent increase in April.
The Conference Board Lagging Economic Index® (LAG) for the U.S. increased 0.5 percent in June to 124.4 (2004 = 100), following a 0.3 percent increase in May, and a 0.4 percent increase in April.
