Leading indicators index in U.S. increased 0.3% in January

The index of U.S. leading indicators climbed in January, an indication the economy will bounce back after winter storms damped economic growth at the beginning of 2014. More

To continue reading this article, please do one of the following.



economic indicators

Leading indicators index in U.S. increased 0.3% in January

Posted 2/20/14

WASHINGTON – The index of U.S. leading indicators climbed in January, an indication the economy will bounce back after winter storms damped economic growth at the beginning of 2014.

The Conference Board’s gauge of the outlook for the next three to six months rose 0.3 percent after no change in the prior month, the New York-based group said today. The advance matched the median forecast of 50 economists surveyed by Bloomberg.

Higher equity prices and home values last year have helped bolster household wealth, giving Americans the means to sustain spending after a winter-related slowdown. A pickup in job and wage growth following a decline in dismissals would provide an added spark for consumers whose purchases account for almost 70 percent of the economy.

“Interest rates are still extremely low and housing and equity wealth have generally been rising,” Jim O’Sullivan, chief U.S. economist at High Frequency Economics in Valhalla, N.Y., said before the report. “The backdrop in terms of financial conditions is quite favorable. I think we’ll continue to see solid growth once we get through the weather effects.”

Estimates in the Bloomberg survey ranged from a decrease of 0.2 percent to an increase of 0.6 percent, after a previously reported 0.1 percent December gain.

Five rise

Five of the 10 indicators in the leading index contributed to the increase, today’s report showed. They included a drop in jobless claims and a pickup in factory orders. Declines in building permits and hours worked weighed on the measure.

Another report today showed fewer Americans filed applications for unemployment benefits last week, a sign employers are holding the line on firings even as cold weather slowed industries from manufacturing to housing. Jobless claims declined by 3,000 to 336,000 in the week ended Feb. 15, the Labor Department said.

The Conference Board’s index of coincident indicators, a gauge of current economic activity, rose 0.1 percent for a second month. That index covers payrolls, incomes, sales and production, measures used by the National Bureau of Economic Research to determine when U.S. recessions start and end.

Next Page
Calendar
PBN Hosted
Events

Two Great Programs...One Great Event. PBN's Annual Celebration of Growth and Innovation is now underway. 2014 applications are now available. Deadline August 1st.
  • 40 Under Forty
    We're almost sold out. The 10th Anniversary of 40 Under Forty, and PBN is planni ...
  • Healthiest Employers
    Save the date - August 14th - at the Providence Marriott for the 3rd annual Heal ...
Advertisement
Purchase Data
Book of Lists
Lists
Book of Lists cover
PBN's annual Book of Lists has been an essential resource for the local business community for almost 30 years. The Book of Lists features a wealth of company rankings from a variety of fields and industries, including banking, health care, real estate, law, hospitality, education, not-for-profits, technology and many more.
Data icons
Data can be purchased as single lists, in either Excel or PDF format; the entire database of the published book, in Excel format; or a printed copy of the Book of Lists.
  • Purchase an e-File of a single list
  •  
  • Purchase an e-File of the entire Book of Lists database
  •  
  • Purchase a printed copy of the Book of Lists
  •  
    National
    Local
    Latest News
    Advertisement