The Conference Board Leading Economic Index® (LEI) for China increased 1.3 percent in June. The index stands at 294.0 (2004 = 100), following a 0.7 percent increase in May and a 1.1 percent increase in April. Five of the six components contributed positively to the index in June.
"June's pickup in the leading economic index for China is unlikely to be fully felt until the final quarter of the year, even though slight monetary loosening and better export performance could underpin more economic activity sooner," says Andrew Polk, resident economist at The Conference Board China Center in Beijing. "The economy's recent lift was mainly policy-induced as large amounts of infrastructure spending breathed life into the industrial sector, but the rate of growth remains fragile unless underlying consumer and investment conditions solidly strengthen."
The Conference Board Coincident Economic Index® (CEI) for China, which measures current economic activity, increased 0.9 percent in June to 262.1 (2004 = 100), following a 0.7 percent increase in May and a 0.7 percent increase in April. All five components contributed positively to the index in June.
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.
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