Leading Indicators Index in U.S. Increased 0.3% in January
Source: Bloomberg
By Katherine Peralta Feb 20, 2014 10:16 AM ET
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, New York, 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.”
Read more: http://www.bloomberg.com/news/2014-02-20/leading-economic-indicators-index-in-u-s-rose-0-3-in-january.html