The Conference Board’s Leading Index Dips in September

 Print Article

Numbers show the economy improves on a sometimes bumpy road
RISMEDIA, Oct. 20-The Composite Index of Leading Economic Indicators declined 0.2 percent in September, following a 0.4 percent increase in August, and a 0.7 percent rise in July, according to The Conference Board.

“The economy is improving (as evidenced by the uptick in the Coincident Economic Index in September), although the road ahead will likely remain bumpy,” says Conference Board Economist Ken Goldstein. “After three straight monthly increases, the Coincident Index showed no change in August. The Leading Index, after improving for four straight months, dipped in September. Both series, however, remain on growth paths and so should the overall economy over the next few months.”

The Conference Board reports that the Coincident Index rose 0.1 percent in September, and was flat in August after increasing for three straight months. The Lagging Index declined 0.5 percent in September, was flat in August, and declined 0.1 percent in July.

Four of the ten indicators that make up the leading index increased in September. The positive contributors — beginning with the largest positive contributor — were average weekly manufacturing hours, stock prices, manufacturers’ new orders for consumer goods and materials, and manufacturers’ new orders for nondefense capital goods. The negative contributors — beginning with the largest negative contributor — were real money supply, interest rate spread, vendor performance, index of consumer expectations, building permits, and average weekly initial claims for unemployment insurance (inverted).

RISMEDIA welcomes your questions and comments. Send your e-mail to:
editorial@rismedia.com