U.S. Leading Economic Index likely rose modestly in April, says Wells Fargo

The Leading Economic Index of the U.S. continued to trend higher in March, rising 0.4 percent. This rise was the seventh straight monthly rise. The rebound was comparatively widespread as six of the Leading Economic Index’s eight components contributed to growth in the month. The interest rate spread component contributed the most in March, adding 0.19 percentage points to the headline.

ISM new orders and housing permits components also came in stronger in the month. In the meantime, manufacturing hours worked and initial jobless claims led to weakness, negatively contributing 0.13 percentage points and 0.09 percentage points from the headline figure.

The Leading Economic Index is likely to have risen modestly in April by 0.4 percent. The yield spread, manufacturing average weekly hours and initial jobless claims components are expected to have contributed the most to the rise in index, noted Wells Fargo in a research report.