Leading Indicators Index Rises in September

New York, NY, Oct. 21, 2010 -- The Conference Board's leading economic index rose 0.3% in September.

The index, a gauge of 10 separate indicators, rose as economists had anticipated. The six-month change has slowed to 0.8% from 5.1%.

The index for August was revised lower to 0.1%, from the 0.3% rise initially reported, and the July index was revised higher to 0.2%, from the 0.1% rise initially reported.

“More than a year after the recession officially ended, the economy is slow and has no forward momentum. The LEI suggests little change in economic conditions through the holidays or the early months of 2011,” said Ken Goldstein, economist at the Conference Board.

In September, initial unemployment and financial components helped put the index in positive territory, offsetting the weakness from supplier deliveries and building permits.

There was growth from five of the 10 indicators — interest rate spread, average initial jobless claims, real money supply, stock prices and manufacturers’ new orders for consumer goods and materials. The index of supplier deliveries, building permits and the index of consumer expectations were a negative weight.

Average weekly manufacturing hours and manufacturers’ new orders for nondefense capital goods held steady.