U.S. Leading Economic Index Rises 0.8% In March, Slightly More Than Expected

(RTTNews) - Leading U.S. economic indicators showed continued improvement in the month of March, according to a report released by the Conference Board on Monday, with the leading economic index rising by slightly more than expected.

The Conference Board said its leading economic index rose by 0.8 percent in March after climbing by 0.5 percent in February. The advance exceeded economist estimates for a 0.7 percent increase.

"The LEI rose sharply again, the third consecutive monthly increase," said Ataman Ozyildirim, an economist at the Conference Board. "After a winter pause, the leading indicators are gaining momentum and economic growth is gaining traction.

"While the improvements were broad-based, labor market indicators and the interest rate spread largely drove the March increase, offsetting the negative contribution from building permits," he added. "And, for the first time in many months, the consumer outlook is much less negative."

The continued increase by the leading economic index reflects positive contributions from six of the ten indicators that make up the index.

The interest rate spread, average weekly manufacturing hours, average weekly initial jobless claims, the Leading Credit Index, stock prices, and manufacturers' new orders for non-defense capital goods excluding aircraft made positive contributions.

Meanwhile, negative contributions from building permits, average consumer expectations for business conditions and the ISM new orders index limited the upside for the index.

The report also showed that the coincident economic index crept up by 0.2 percent in March following a 0.4 percent increase in February.

All four of the indicators that make up the coincident economic index increased in March.

The lagging economic index also rose by 0.6 percent in March after climbing by 0.3 percent in the previous month.

The increase by the lagging index partly reflected positive contributions from commercial and industrial loans outstanding, the average duration of unemployment and the change in CPI for services.