US Leading Economic Index gains in July, moderate economic growth likely to continue

The US leading Economic Index, published by the Conference Board, rose in July by 0.4 percent month-on-month. This is one-tenth above median consensus expectations. Recovery in the average workweek, higher stock prices, lower jobless claims and stable interest rate spreads mainly drove the rise in the leading Economic Index. On a year-on-year basis, the Leading Economic Index rose 1.2 percent, with most of the recent improvement owing to the stabilization in the labor market data, said Barclays in a research report.

“The U.S. LEI picked up again in July, suggesting moderate economic growth should continue through the end of 2016. There may even be some moderate upside growth potential if recent improvements in manufacturing and construction are sustained, and average consumer expectations don’t deteriorate further”, said Ataman Ozyildirim, Director of Business Cycles and Growth Research at The Conference Board.