U.S. Leading Economic Index Rises 0.5% In December, Slightly More Than Expected

(RTTNews) - Reflecting positive contributions from a majority of components, the Conference Board released a report on Friday showing that its index of leading U.S. economic indicators rose by slightly more than anticipated in the month of December.

The Conference Board said its leading economic index climbed by 0.5 percent in December following a downwardly revised 0.4 percent increase in November.

Economists had expected the index to rise by 0.4 percent compared to the 0.6 percent advance originally reported for the previous month.

The bigger than expected increase by the leading economic index reflected positive contributions from eight of the ten indicators that make up the index.

The interest rate spread, the Leading Credit Index, average weekly initial jobless claims, and average consumer expectations for business conditions made some of the biggest positive contributions.

"December's gain in the LEI was driven by a majority of its components, suggesting the short-term outlook is getting brighter and the economy continues to build momentum," said Ataman Ozyildirim, Economist at the Conference Board.

He added, "Still, a lack of growth in residential construction and average weekly hours in manufacturing remains a concern."

The report also showed that the coincident economic index edged up by 0.2 percent in December after climbing by 0.5 percent in November.

The modest increase by the index reflected positive contributions from employees on non-agricultural payrolls, personal income less transfer payments and manufacturing and trade sales.

Additionally, the Conference Board said the lagging economic index rose by 0.3 percent in December, matching the increase seen in the previous month.

Positive contributions from consumer prices for services, commercial and industrial loans outstanding, and the average duration of unemployment led to the increase by the index.