Leading Economic Indicators Index Shows Positive Results
The Conference Board's index of leading economic indicators was up 0.5% for October after another 0.5% increase in September.
Bloomberg reports that "A wide yield spread continues to be the biggest positive though to a smaller degree given declines underway in long rates, declines triggered and furthered by QE2. A rise in money supply, also related to QE2, is an increasingly significant plus. Another central positive is the factory workweek, strength that is likely to continue given the uplift underway in the manufacturing sector."
The Conference Board also reports an increase of 0.1% in the coincident index, and the lagging index increased 0.1% after a 0.5% increase in September.
Ken Goldstein, economist at The Conference Board said, “The economy is slow, but latest data on the U.S. LEI suggest that change may be around the corner. Expect modest holiday sales, driven by steep discounting. But following a post-holiday lull, the indicators are suggesting a mild pickup this spring.”