Partly reflecting recent weakness in stock markets, the manufacturing sector and housing permits, the Conference Board released a report on Thursday showing a modest drop by its index of leading U.S. economic indicators.
The Conference Board said its leading economic index edged down by 0.2 percent in September after coming in unchanged in August and July. Economists had been expecting another unchanged reading.
“Despite September’s decline, the U.S. LEI still suggests economic expansion will continue, although at a moderate pace,” said Ataman Ozyildirim, Director of Business Cycles and Growth Research at the Conference Board.
He added, “The U.S. economy is on track for moderate growth of about 2.5 percent in the coming quarters, despite the mixed global economic landscape.”
The modest drop by the leading index reflected negative contributions from stock prices, building permits, average weekly manufacturing hours, and the ISM new orders index.
Meanwhile, positive contributions from financial indicators, consumer expectations and initial jobless claims helped to limit the downside.
The report also said the coincident economic index rose 0.2 percent in September after inching up by 0.1 percent in August.
Positive contributions from employees on non-farm payrolls, personal income less transfer payments, and manufacturing and trade sales led to the increase by the index.
The lagging economic index also climbed 0.5 percent in September after ticking up by 0.1 percent in the previous month.
The increase reflected positive contributions from the average duration of unemployment, the change in consumer prices for services and the ratio of consumer installment credit outstanding to personal income.
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