The Conference Board Leading Economic Index (LEI) for the U.S. increased 1.2% in August to 106.5, following a 2.0% increase in July and a 3.1% increase in June.
“While the U.S. LEI increased again in August, the slowing pace of improvement suggests that this summer’s economic rebound may be losing steam heading into the final stretch of 2020,” said Ataman Ozyildirim, senior director of economic research at The Conference Board. “Despite the improvement, the LEI remains in recession territory, still 4.7% below its February level. Weakening in new orders for capital goods, residential construction, consumers’ outlook, and financial conditions point to increasing downside risks to the economic recovery. Looking ahead to 2021, the LEI suggests that the US economy will start the new year under substantially weakened economic conditions.”