Leading Indicators Rise in July

Washington, DC, August 20, 2007--The Conference Board said that the leading index increased 0.4%, the coincident index increased 0.2 % and the lagging index also increased 0.2% in July.

The leading index increase offset its June decline. The leading index has increased in three of the last six months.

Following a brief pick up at the end of 2006, the leading index has been essentially flat in the first half of 2007 and the strengths and weaknesses among the leading indicators have been balanced over this period.

At the same time, in the first half of the year real GDP growth slowed down to about a 2.0% average annual rate (including a 0.6% rate in the first quarter and a 3.4% rate in the second quarter), following a 2.6% average rate in the second half of 2006.

The performance of the leading index so far in the first half of 2007 continues to suggest that the economy is likely to grow in the near term, albeit at a slow pace.

Six of the ten indicators that make up the leading index increased in July.