Leading Economic Indicators Gain Again
Economic data released today indicate continued modest expansion in the United States, according to The Conference Board.
The board’s index of leading economic indicators, which measures activity several months out, rose 0.2 percent in October, matching market expectations but down from a 0.5-percent increase in September.
Ataman Ozyildirim, an economist at The Conference Board, based in New York, said improvements in home construction and financial components of the index have offset weak consumer expectations, new orders for manufactured goods, and slow gains in the labor market.
"Based on current trends, the economy will continue to expand modestly through the early months of 2013," said Ken Goldstein, another economist at The Conference Board. "Hurricane Sandy, which is not yet fully reflected in the (index), will likely adversely affect consumer spending and home building in the short term, but it’s too soon to gauge the net impact."
Goldstein added that the outcome of the "fiscal cliff" debates in Washington is another factor that could alter the outlook.
The index’s 10 components include: Average weekly hours in manufacturing; average weekly initial claims for unemployment insurance; manufacturers’ new orders; consumer goods and materials; building permits for new private housing units; prices of 500 common stocks; and average consumer expectations for business conditions.
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