The Conference Board Leading Economic Index (LEI) for the U.S. increased 0.3% in June to 102.2, following a 0.7% increase in May, and a 0.3% increase in April.
“Broad-based increases in the LEI over the last six months signal an economy that is expanding in the near term and may even somewhat accelerate in the second half,” said Conference Board economist Ataman Ozyildirim. “Housing permits, the weakest indicator during this period, reflects some risk to this improving outlook. But favorable financial conditions, generally positive trends in the labor markets and the outlook for new orders in manufacturing have offset the housing market weakness over the past six months.”
“The CEI shows the pace of economic activity continued to expand moderately through June,” said Conference Board economist Ken Goldstein. “Stronger consumer demand driven by sustained job gains and improving confidence remains the main source of improvement for the U.S. economy. In addition to a stronger housing market, more business investment could also provide an upside to the overall economy.”