Leading Economic Indicators Higher Than Expected

New York, NY, Sept. 23, 2010--The Conference Board's leading economic index rose 0.3% in August, after a 0.1% increase in July.

The rise was stronger than the 0.2% increase that economists expected. However, the index has slowed to 2% in the six months to August, down from 4.8% in the preceding six months.

The biggest positive contribution in August came from the interest rate spread between 10-year Treasury bonds and the federal funds rate, while the biggest drag came from the average weekly rise in initial jobless claims.

Ken Goldstein, economist at The Conference Board: “While the recession officially ended in June 2009, the recent pace of growth has been disappointingly slow, fueling concern that the economic recovery could fade and the U.S. could slide back into recession. However, latest data from the U.S. LEI suggest little change in economic conditions over the next few months. Expect more of the same – a weak economy with little forward momentum through 2010 and early 2011.”