Smile, The Economy’s Looking Up
June 18, 2009 by Lela Davidson
Filed under Finance
Today the Conference Board announced that the Leading Economic Index (LEI) for the U.S. increased 1.2 percent in May, following a 1.1 percent increase in April, and a 0.3 percent decline in March.
Ken Goldstein, Economist at The Conference Board said:
“The leading economic index increased for the second consecutive month. The coincident economic index is still declining, but the declines are less intense. The recession is losing steam. Confidence is rebuilding and financial market volatility is abating. Even the housing market appears to be stabilizing. If these trends continue, expect a slow recovery beginning before the end of the year. However, employment will take longer to turn around.”
Contributing positively to the LEI were:
- Vendor performance
- Interest rate spread
- Real money supply
- Stock prices
- Consumer expectations
- Building permits
These more than offset the negative contributions from weekly hours and initial unemployment claims.
The Conference Board LEI for the U.S. now stands at 100.2 (2004=100).
