Friday, March 17, 2017
U.S. Leading Economic Index Reaches Highest Level in a Decade
The Conference Board said its leading economic index rose 0.6% in February — the third straight gain of that magnitude — to reach its highest level in more than a decade.
The leading economic index is constructed using 10 components, including the new-orders gauge of a manufacturing purchasing managers index and the interest rate spread between the 10-year Treasury and federal-funds rate.
Specifically, the ten components of The Conference Board Leading Economic Indexfor the U.S. include:
Average weekly hours, manufacturing
Average weekly initial claims for unemployment insurance
Manufacturers’ new orders, consumer goods and materials
ISM® Index of New Orders
Manufacturers' new orders, nondefense capital goods excluding aircraft orders
Building permits, new private housing units
Stock prices, 500 common stocks
Leading Credit Index™
Interest rate spread, 10-year Treasury bonds less federal funds
Average consumer expectations for business conditions
The only indicator down in February was building permits.
Sorry Austrian-lites, this is nowhere near what a recession looks like.
at 11:50:00 AM