U.S. Leading Economic Index increases less than anticipated in June

The Conference Board announced on Thursday its Leading Economic Index (LEI) for the U.S. rose 2.0 percent m-o-m in June to 102.0 (2016 = 100), following a revised 3.2 percent m-o-m advance in May (originally a 2.8 percent m-o-m gain).

Economists had forecast an increase of 2.1 percent m-o-m.

“The June increase in the LEI reflects improvements brought about by the incremental reopening of the economy, with labor market conditions and stock prices in particular contributing positively,” noted Ataman Ozyildirim, Senior Director of Economic Research at The Conference Board. “However, broader financial conditions and the consumers’ outlook on business conditions still point to a weak economic outlook. Together with a resurgence of new COVID-19 cases across much of the nation, the LEI suggests that the US economy will remain in recession territory in the near term.”

The report also revealed the Conference Board Coincident Economic Index (CEI) for the U.S. went up 2.5 percent m-o-m in June to 96.7, following a 1.6 percent m-o-m increase in May. Meanwhile, its Lagging Economic Index (LAG) for the U.S. declined 2.5 percent m-o-m in June to 110.8, following a 1.2 percent m-o-m drop in May.