U.S. Leading Economic Index rises more than forecast in July

The Conference Board announced on Thursday its Leading Economic Index (LEI) for the U.S. rose 1.4 percent m-o-m in July to 104.4 (2016 = 100), following a revised 3.0 percent m-o-m advance in June (originally a 2.0 percent m-o-m gain).

Economists had forecast an increase of 1.1 percent m-o-m.

“The US LEI increased for the third consecutive month in July, albeit at a slower pace than the sharp increases in the previous two months,” noted Ataman Ozyildirim, Senior Director of Economic Research at The Conference Board. “Despite the recent gains in the LEI, which remain fairly broad-based, the initial post-pandemic recovery appears to be losing steam. The LEI suggests that the pace of economic growth will weaken substantially during the final months of 2020.”

The report also revealed the Conference Board Coincident Economic Index (CEI) for the U.S. went up 1.2 percent m-o-m in July to 99.2, following a 2.9 percent m-o-m climb in June. Meanwhile, its Lagging Economic Index (LAG) for the U.S. declined 1.0 percent m-o-m in July to 109.2, following a 2.3 percent m-o-m drop in June.