Leading Index: The Expansion Is Gaining Momentum
The Conference Board reported today the Leading Economic Index (LEI) for the U.S. increased in November for the fifth straight month, and for the 19th month out of the last 20 months going back to April 2009 as the recession was coming to an end and the LEI turned up (see chart above). Economists at the Conference Board made the following statements:
Ataman Ozyildirim: “November’s sharp increase in the LEI, the fifth consecutive gain, is an early sign that the expansion is gaining momentum and spreading. Nearly all components rose in November. Continuing strength in financial indicators is now joined by gains in manufacturing and consumer expectations, but housing remains weak.”
Ken Goldstein: “The U.S. economy is showing some sparks of life in late 2010. Overall, the indicators point to a mild pickup after a slow winter. Looking further out, possible clouds on the medium term horizon include weaknesses in housing and employment.”
During the last week the Conference Board also reported positive increases in the October LEIs for the U.K, Korea and China, and a decrease for Spain.