The Conference Board Leading Economic Index (LEI) for the U.S. increased 1.4 percent in March, following a 0.4 percent gain in February and a 0.6 percent rise in January, it was announced on April 19. The U.S. LEI is now at its highest level.
Says Ataman Ozyildirim, economist at The Conference Board: "The U.S. LEI has risen steadily for a year, and its six-month growth rate has remained fairly stable in recent months - led by improvements in financial and labor market indicators. Payroll employment made its first substantial contribution to the coincident economic index, suggesting a recovery that is beginning to gain traction."
Adds Ken Goldstein, economist at The Conference Board: "The indicators point to a slow recovery that should continue over the next few months. The leading, coincident and lagging series are rising. Strength of demand remains the big question going forward. Improvement in employment and income will be the key factors in whether consumers push the recovery on a stronger path."
The Conference Board Coincident Economic Index (CEI) for the U.S. rose 0.1 percent in March, following a 0.1 percent increase in February, and no change in January. The Conference Board Lagging Economic Index (LAG) increased 0.2 percent in March, following a 0.1 percent increase in February, and a 0.3 percent decline in January.
Leading indicators: Seven of the 10 indicators that make up The Conference Board LEI for the U.S. increased in March. The positive contributors – beginning with the largest positive contributor – were the interest rate spread, average weekly manufacturing hours, the index of supplier deliveries (vendor performance), stock prices, building permits, average weekly initial claims for unemployment insurance (inverted), and manufacturers' new orders for consumer goods and materials. The negative contributors – beginning with the largest negative contributor – were real money supply, manufacturers' new orders for nondefense capital goods and the index of consumer expectations.
The Conference Board LEI for the U.S. now stands at 109.6 (2004=100). Based on revised data, this index increased 0.4 percent in February and increased 0.6 percent in January. During the six-month span through March, the leading economic index increased 5.2 percent, with eight out of 10 components advancing (diffusion index, six-month span equals 80 percent).
Coincident indicators: All the indicators that make up The Conference Board CEI for the U.S. increased in March. The positive contributors to the index – beginning with the largest positive contributor – were employees on nonagricultural payrolls, personal income less transfer payments, industrial production and manufacturing and trade sales.
The Conference Board CEI for the U.S. now stands at 100.2 (2004=100). This index increased 0.1 percent in February and remained unchanged in January. During the six-month period through March, the coincident economic index increased 0.7 percent, with three of four components advancing (diffusion index, six-month span equals 75.0 percent).
Lagging indicators: The Conference Board LAG for the U.S. stands at 107.9 (2004=100) in March, with three of the seven components advancing. The positive contributors to the index – beginning with the largest positive contributor – were commercial and industrial loans outstanding, change in labor cost per unit of output, and change in CPI for services. The negative contributors – beginning with the largest negative contributor – were average duration of unemployment (inverted), and the ratio of consumer installment credit to personal income. The ratio of manufacturing and trade inventories to sales and average prime rate charged by banks held steady in March. Based on revised data, the lagging economic index increased 0.1 percent in February and decreased 0.3 percent in January.