Conference Board’s LEI Rises for Third Straight Month

The U.S. economy may be picking up some momentum as it heads into 2003, a report by the Conference Board said Thursday.

The board’s index of leading economic indicators, a predictor of future economic activity, rose 0.1% in December – the third consecutive month that it has posted a gain.

Increases in building permits and hours worked at manufacturers helped push the index into positive territory, the New York-based Conference Board said.

"Three consecutive increases in the leading economic indicators suggests that the economy might turn in a better performance in the first quarter of 2003 than it did in the second half of last year," Conference Board Economist Ken Goldstein said. "The indication is that the economy may be moving away from the soft spot it hit this winter. Consumption plus investment could deliver enough growth in the first half of 2003 to be consistent with the rise in the leading indicators."

Economists had projected that the LEI would remain unchanged after a reported 0.7% increase in the index during November.

In a separate report, the Labor Department said that initial claims for unemployment benefits rose 18,000 last week to 381,000.

The four-week moving average for initial claims fell to 386,500 from 388,500 the previous week, Labor said.

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