U.S. Leading Economic Index Rises More Than Expected In November

(RTTNews) - With building permits, the interest rate spread, and stock prices driving the improvement, the Conference Board released a report on Thursday showing its leading U.S. economic indicators index rose by more than expected in November.

The Conference Board said its leading economic index climbed by 0.4 percent in November following a 0.6 percent increase in October. Economists had expected the index to edge up by 0.2 percent.

Ataman Ozyildirim, Director of Business Cycles and Growth Research at the Conference Board, said, "Although the six-month growth rate of the LEI has moderated, the economic outlook for the final quarter of the year and into the new year remains positive."

The bigger than expected increase by the leading index reflected positive contributions from five of the ten indicators that make up the index.

Building permits, the interest rate spread, stock prices, the Leading Credit Index, and manufacturers' new orders for consumer goods and materials made positive contributions.

However, negative contributions from the ISM new orders index, average weekly initial jobless claims, manufacturers' new orders for non-defense capital goods excluding aircraft, and average consumer expectations for business conditions limited the upside for the index.

The report also said the coincident economic index inched up by 0.1 percent in November after rising by 0.2 percent in October.

The modest uptick by the index reflected positive contributions from employees on non-farm payrolls, personal income less transfer payments and manufacturing and trade sales. Meanwhile, industrial production declined.

The Conference Board also said the lagging economic index rose by 0.3 percent in November following a 0.2 percent increase in October.

Commercial and industrial loans outstanding, the change in consumer prices for services and the ratio of consumer installment credit outstanding to personal income made positive contributions.