With the impact of recent hurricanes dissipating, the Conference Board released a report on Monday showing a much bigger than expected jump by its index of leading U.S. economic indicators in the month of October.
The Conference Board said its leading economic index surged up by 1.2 percent in October after inching up by a revised 0.1 percent in September.
Economists had expected the index to climb by 0.6 percent compared to the 0.2 percent drop originally reported for the previous month.
"The growth of the LEI, coupled with widespread strengths among its components, suggests that solid growth in the US economy will continue through the holiday season and into the new year," said Ataman Ozyildirim, Director of Business Cycles and Growth Research at the Conference Board.
The much bigger than expected increase by the leading economic index reflected positive contributions from nine of the ten indicators that make up the index.
Average weekly jobless claims, building permits, the ISM new orders index, average consumer expectations for business conditions, the interest rate spread, and stock prices were among the biggest positive contributors.
The Conference Board said the only negative contributor was manufacturers' new orders for non-defense capital goods excluding aircraft.
The report also said the coincident economic index rose by 0.3 percent in October following a 0.1 percent uptick in September. The increase reflected positive contributions from all four indicators that make up the index.
The lagging economic index also edged up by 0.2 percent in October after showing no change in the previous month. Four of the index's seven components advanced.
by RTT Staff Writer
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