US Leading Economic Index Rose 0.4% in May

The Conference Board’s Leading Economic Index increased 0.2 percent in May, short of economists’ expectations.

The index was expected increase 0.4 percent in May, according to economists polled by Reuters.

May’s increase marks the seventh month of gains, after jumping 0.4 percent to 109.4 in April.

“While May’s increase in the U.S. LEI was slower than in recent months, the improvements in a majority of its components offset the declines in leading indicators of labor markets and residential construction,” said Ataman Ozyildirim, Director of Business Cycles and Growth Research at The Conference Board. “The U.S. LEI still points to solid growth but the current trend, which is moderating, indicates that economic activity is not likely to accelerate.”

The measurement is used to forecast global economic trends and keep tabs on the U.S. economy. The Conference Board, a business research association, determines a composite value based on 10 key metrics, including manufacturers’ new orders, stock prices and average weekly unemployment claims, to create the composite value.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza