Conference Board’s LEI Flat in June

The Conference Board said Thursday that its index of leading economic indicators held steady at 112.4 in June – the second time in three months the monthly index has failed to increase. The index had risen 0.6% in May, the group said.

The index is closely watched by trucking companies because it is a key gauge of economic activity and forecasts business activity for the next three to six months.

The index is centered on a figure of 100, which represents conditions from 1996.

In a release on its Web site, the board said a slumping stock market and shaken consumer confidence were the main reasons the index was flat.

The coincident index, which measures current economic activity, rose 0.3% in June to 116.2. The index of lagging indicators, which reflects changes that have already occurred, fell 0.1% to 100.6.

The board said industrial production posted its biggest monthly gain since October 1998. Over the past six months, production has increased more than in any period since October 2000.

Of the index’s 10 indicators, the five that increased were real money supply, average weekly initial jobless claims, average weekly manufacturing hours, vendor performance and building permits.

Four indicators -- stock prices, index of consumer expectations, interest spread and new orders for nondefense capital goods -- declined, while orders for consumer goods and materials held steady, the report said.

The New York-based Conference Board is a nonprofit research and business group, with more than 2,700 corporate and other members around the world.

9114