U.S. Leading Economic Index Rose in September, But Signals Slowdown -- The Conference Board
By Xavier Fontdegloria
An economic index that measures U.S. business cycles increased
in September, although it suggested that economic growth eased
compared with the prior month, according to data from the
Conference Board released Thursday.
The Leading Economic index rose 0.2% to 117.5 in September
compared with August. The 0.2% increase is below expectations from
economists polled by The Wall Street Journal, who forecast a 0.4%
In August, the index increased by 0.8% on the month compared
with a previously estimated 0.9% rise.
The index suggests that the U.S. economy remains on a more
moderate growth trajectory compared with the first half of the
year, Conference Board Senior Director of Economic Research Ataman
"The Delta variant, rising inflation fears, and supply-chain
disruptions are all creating headwinds for the U.S. economy," he
The Conference Board Leading Economic Index is based on 10
components, among them initial claims for unemployment insurance,
manufacturers' new orders, building permits of new private housing
units, stock prices and consumers expectations. It is intended to
signal swings in the business cycle and to smooth out some of the
volatility of individual indicators.
The strengths among the components remained widespread in the
last few months despite the slower growth, Mr. Ozyildirim said.
The Conference Board forecasts U.S. gross domestic product to
expand 5.7% in 2021 and 3.8% in 2022.
The Coincident Economic Index was unchanged in September at
105.8, while the Lagging Economic Index increased 0.3% to 106.5,
The Conference Board said.
Write to Xavier Fontdegloria at email@example.com
(END) Dow Jones Newswires
October 21, 2021 10:28 ET (14:28 GMT)
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