The Conference Board Leading Economic Index that measures U.S. business cycles jumped in August at a slightly quicker rate than in July.
- The Leading Economic Index stood at 117.1 in August, up 0.9% compared with the previous month. The rise beats the expectations from The Wall Street Journal economists, which expected a 0.7% rise.
- In July, the index rose by 0.8% on the month, less than a 0.9% increase initially estimated. The indicator is well above pre-pandemic levels.
- Conference Board Senior Director of Economic Research Ataman Ozyildrim stated that while the Delta Variant could create headwinds for labor markets and the consumer spending outlook in the near term, the trend in the LEI is consistent with robust economic growth in the rest of the year.
- Mr. Ozyildirim further stated that real gross domestic product growth for 2021 is expected to rise nearly 6.0%, before cooling to 4.0% in 2022.
The Conference Leading Economic Index comprises 10 components, among them initial claims for unemployment insurance, manufacturers’ new orders, building permits of new private housing units, stock prices, and consumer expectations.
DXY down -0.39%, EUR USD up +0.43%Source: The Conference Board.