U.S. Leading Economic Index Falls Slightly in October
November 21 2019 - 10:53AM
Dow Jones News
By Patrick Thomas
An economic index that measures U.S. business trends declined in
October, following a 0.2% decline in both September and August.
The Conference Board Leading Economic Index fell 0.1% to 111.7
in October. Economists polled by The Wall Street Journal expected
the index to rise 0.2%.
The decline was driven by weaknesses in new orders for
manufacturing, average weekly hours, and unemployment insurance
claims, Thursday's report said.
"The major difference this month is the softening in the labor
market, whereas conditions in manufacturing remain weak and show no
signs of improvement yet," Ataman Ozyildirim, senior director of
economic research at the Conference Board said in a statement.
"Taken together, the LEI suggests that the economy will end the
year on a weak note, at just below 2% growth."
Comprising 10 factors 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.
Write to Patrick Thomas at patrick.thomas@wsj.com
(END) Dow Jones Newswires
November 21, 2019 10:38 ET (15:38 GMT)
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