New York, NY, Aug. 21--A leading index of economic health rose for the fourth consecutive month, signaling a widespread pickup in the nation's rate of growth.
The Conference Board said its composite index of leading indicators rose 0.4% in July to 112.5, an improvement from June's 0.3% increase. The index was equal to 100 in 1996.
The index of leading indicators has been showing steady growth, increasing almost 2% from its recent low in March. The improvement in the index--a composite of ten different economic measurements that are believed to be forward-looking--mirrors a similar performance at the end of 2001 and in early 2002, which was followed by stronger economic growth.
"The bottom line is that the leading economic indicators are more favorable than any time since the recession started more than two years ago," said Ken Goldstein, a Conference Board economist.
Half of the ten leading indicators increased in July, led by the interest-rate spread, average weekly initial claims for unemployment insurance and stock prices. The factors showing the least improvement were average weekly manufacturing hours and building permits.
