Leading Indicators Increase 1.1% in Sign U.S. Economy to Continue Growing

[Purveyor]

Source: Bloomberg

By Timothy R. Homan

Jan. 21 (Bloomberg) -- The index of U.S. leading indicators increased more than anticipated in December, a sign the economy will keep growing through the first half of the year.

The New York-based Conference Board’s gauge of the outlook for the next three to six months rose 1.1 percent, the most in three months, after climbing 1 percent in November. The December gain was the ninth straight and exceeded the median forecast in a Bloomberg News survey for a 0.7 percent rise.

Fewer firings, rising stock prices and efforts by the Federal Reserve to keep short-term interest rates low boosted the leading index and may help keep Americans spending. Faster economic growth will hinge on sustained employment gains that have yet to materialize.

“The economic recovery still has momentum,” said Tim Quinlan, an economist at Wells Fargo Securities LLC in Charlotte, North Carolina, who correctly forecast the December gain. “Right now, the linchpin is confidence. Both businesses and consumers need to feel like it’s a worthwhile thing to start spending money again.”

Read more: http://www.bloomberg.com/apps/news?pid=20601068&sid=alNv.W1JldP0

[DavidDvorkin]

1. No unrecs yet?

I'm surprised.

[groundloop]

3. Tell ya' what, I'll hit rec. just for fun

Hey, this is good news - we need some.

[DavidDvorkin]

6. Maybe that will get the unrecs going

Of course it's good news. There seem to be people on DU who unrec good news. I was surprised that they hadn't shown up immediately.

[Beavker]

2. Great news. I can see the Market has listened by doing the opposite.

I guess today they (Institutional Investors, let's face it, pee ons like us don't move the market) chose not to listen to this piece of data.

[rfranklin]

5. Options recently expired...this is the setup for next month...

Stocks will be sold off and then pruchased again once the option profits are in place.

[bossy22]

4. good news

that bad news is its going to take a while until this has an effect on unemployment- but hey its a start