U.S. Leading Economic Index likely to have risen strongly in January – Wells Fargo

The U.S. Leading Economic Index had risen for the 16th straight month in December by 0.6 percent. According to a Wells Fargo research report, the index is expected to have risen further in the month of January.

On a three-month annualized basis, the leading index had reached 9.9 percent. One of the largest contributors to the solid reading was the ISM’s new orders component that had contributed 0.29 percentage points to the index.

“We expect the LEI will post another sizable gain in January of 0.8 percent. The measure should be led higher once again by the ISM new order component given the continued strengthen observed in both the ISM manufacturing and non-manufacturing new order components in January”, stated Wells Fargo.

The LEI continues to indicate toward a strong economic growth environment in the coming quarters, in line with the projection for GDP growth between 2.5 and 3 percent on an annualized basis, added Wells Fargo.

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