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

The Conference Board announced on Thursday its Leading Economic Index (LEI) for the U.S. rose 0.7 percent m-o-m in June to 115.1 (2016 = 100), following a revised 1.2 percent m-o-m gain in May (originally a 1.3 percent m-o-m jump).

Economists had forecast an increase of 0.9 percent m-o-m.

“June’s gain in the U.S. LEI was broad-based and, despite negative contributions from housing permits and average workweek, suggests that strong economic growth will continue in the near term,” noted Ataman Ozyildirim, Senior Director of Economic Research at The Conference Board. “While month-over-month growth slowed somewhat in June, the LEI’s overall upward trend - which started with the end of the pandemic-induced recession in April 2020 - accelerated further in Q2. The Conference Board still forecasts year-over-year real GDP growth of 6.6 percent for 2021 and a healthy 3.8 percent for 2022.”

The report also revealed the Conference Board Coincident Economic Index (CEI) for the U.S. went up 0.4 percent m-o-m in June to 105.5, following a 0.5 percent m-o-m advance in May. Meanwhile, its Lagging Economic Index (LAG) for the U.S. was unchanged m-o-m in June at 105.8, following a 0.6 percent m-o-m growth in May.