Index of U.S. Leading Indicators Rises More than Forecast [View all]
The index of U.S. leading economic indicators climbed more than forecast in July, a sign of sustained expansion in the world’s largest economy.
The Conference Board’s gauge of the outlook for the next three to six months increased 0.4 percent after a revised 0.4 percent drop in June, the New York-based group said today. Economists projected the gauge would rise by 0.2 percent, according to the median estimate in a Bloomberg survey.
Retail sales rose more than forecast last month, showing households are looking beyond the slowdown and increasing consumer spending, which accounts for about 70 percent of the economy. The housing market also has signaled improvement. At the same time, unemployment remains above 8 percent, which is consistent with the Federal Reserve’s view that economic growth will “remain moderate over coming quarters.”
“What we’ve seen so far is a decent batch of July numbers, not necessarily convincing to the point that we’re going to see a sharp turnaround in the economy, but it is putting at bay concerns that we’re heading for another recession,” Sean Incremona, senior economist at 4Cast Inc. in New York, said before the report. “Housing is improving -- that’s helping the bottom line. But it’s still a very slow recovery.”