A new forward-looking report on the U.S. economy predicts that growth and hiring should increase in the months ahead.
The Conference Board’s Leading Economic Index (LEI) for the U.S. was up o.5% in May, after rising 0.3% in April and 1.0% in March. After a slow start to the year, the U.S. economy has showed increased strength for the last three months.
According to Board economist Ataman Ozyildirim, the May increase in the LEI was very broad-based. “Housing permits held the index back slightly but the LEI still points to an expanding economy and its pace may even pick up in the second half of the year,” he said, in a statement.
The LEI looks at such things as initial unemployment claims, manufacturing hours worked, building permits issued, manufacturing orders, stock prices and interest rates.
These are measures that add up to the economic conditions we can expect in the near future. It’s not a perfect “crystal ball” but it’s been pretty reliable over the years. Right now, what the LEI is saying is that the U.S. economy is poised to accelerate into the second half of the year.
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