Leading Indexes Post Healthy October Increase

The Conference Board, New York, said its Leading Economic Index increased by 0.6 percent in October to 124.1, following an 0.1 percent decline in September and an 0.1 percent decline in August.

All of the LEI indices posted monthly gains. The Coincident Economic Index increased by 0.2 percent in October to 113.0, following an 0.1 percent increase in September and an 0.2 percent increase in August. The Lagging Economic Index increased by 0.2 percent in October to 119.3, following an 0.6 percent increase in September and an 0.2 percent increase in August.

Mark Vitner, senior economist with Wells Fargo Securities, Charlotte, N.C., called the growth “impressive,” noting equity prices and building permits drove the increase. He said the reading bested the expectations of most analysts and comes after September’s upward revision.

“While trend growth in the LEI has slowed a bit since last year, the index continues to point to solid U.S. economic growth ahead,” Vitner said.

“Despite lackluster third quarter growth, the economic outlook now appears to be improving,” said Ataman Ozyildirim, director of business cycles and growth research with The Conference Board. “While the U.S. LEI’s six-month growth rate has moderated, the U.S. economy remains on track for continued expansion heading into 2016.”