Leading Economic Index Rises 0.1% in June

The index of leading U.S. economic indicators rose 0.1% in June, the third straight increase, the Conference Board reported Monday.

However, the board was cautious about reading too much into the report saying, “three months of increases in the leading index is not enough to signal the beginning of a sustained period of above-trend economic growth.”

The LEI is closely watched by trucking companies because it forecasts business activity for the next three to six months. June’s increase followed a 1.1% increase in May and a 0.1% rise in April.

During the six-month span through June, the leading index increased 0.5%.

Four of the 10 indicators the Conference Board uses to derive the index contributed to the rise. Beside higher stock prices, money supply and building permits, a decline in initial jobless claims boosted the index.

The board's index of coincident indicators, a gauge of current economic activity, increased 0.1% in June for a second month. The index tracks payrolls, incomes, sales and production.

The index of lagging indicators fell 0.5% last month, compared with a 0.1% decrease in May.

The New York-based Conference Board said the monthly index is based on a representative sample of 5,000 U.S. households.

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