Leading Economic Indicators Index Falls in September
October 19 2017 - 12:21PM
Dow Jones News
By Allison Prang
An economic index that measures business trends decreased
slightly in September as recent hurricanes put a dent in activity,
marking the first time the index has fallen in the past year.
The Conference Board Leading Economic Index fell 0.2% to 128.6
last month. The index had risen in both July and August. Economists
polled by The Wall Street Journal were expecting the index to rise
0.2%.
Metrics including average workweek, building permits and average
consumer expectations for business conditions fell, while
employment insurance claims and stock prices rose slightly.
Comprised of 10 components, including initial claims for jobless
benefits, factory orders and the S&P 500's price change, the
index is intended to signal swings in the business cycle and to
smooth out some of the volatility of individual indicators.
Ataman Ozyildirim, the Conference Board's director of business
cycles and growth research, said the index "remains consistent with
continuing solid growth in the U.S. economy for the second half of
the year."
"The source of weakness was concentrated in labor markets and
residential construction, while the majority of the LEI components
continued to contribute positively," Mr. Ozyildirim said.
The board's coincident index -- designed to reflect current
economic conditions -- rose 0.1% in September from August.
The Lagging Economic Index fell by 0.1% in September, despite
seeing increases in the two prior months.
Write to Allison Prang at allison.prang@wsj.com
(END) Dow Jones Newswires
October 19, 2017 12:06 ET (16:06 GMT)
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