U.S. Leading Economic Index Increased in May -- The Conference Board
By Xavier Fontdegloria
An economic index that measures U.S. business cycles rose in
May, signaling that economic growth remains robust, data from The
Conference Board showed Thursday.
The Leading Economic index was 114.5 in May, up 1.3% compared
with April. The rise is in line with expectations from economists
polled by The Wall Street Journal.
In April, the index climbed by a downwardly revised 1.3%
compared with March.
The indicator currently stands above its previous peak reached
in January 2020, signaling that strong economic growth will
continue in the near term, Conference Board Senior Director of
Economic Research Ataman Ozyildirim said.
The Conference Board forecasts U.S. gross domestic product to
grow 9% in the second quarter at an annualized rate, and by 6.6%
year-over-year in 2021, he said.
The Conference Board Leading Economic Index is based on 10
components, among them initial claims for unemployment insurance,
manufacturers' new orders, building permits of new private housing
units, stock prices and consumers expectations. It is intended to
signal swings in the business cycle and to smooth out some of the
volatility of individual indicators.
Strengths among the leading indicators were widespread in May,
with initial claims for unemployment insurance making the largest
positive contribution to the index and housing permits making the
only negative contribution, Mr. Ozyildirim said.
The Coincident Economic Index rose 0.4% in May to 105.1, while
the Lagging Economic Index decreased 2.2% to 103.0, The Conference
Board's report showed.
Write to Xavier Fontdegloria at email@example.com
(END) Dow Jones Newswires
June 17, 2021 10:28 ET (14:28 GMT)
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