The Conference
Board reported on Friday that its Leading Economic Index (LEI) for the US fell 0.6
per cent m-o-m in April to 101.8 (2016=100), following an unrevised
0.3 m-o-m decrease in
March.
Economists had forecast
a drop of 0.3 per cent m-o-m.
The report also
revealed the Conference Board Coincident Economic Index (CEI) for the US increased by 0.2 per
cent m-o-m to 112.3 in April after a downwardly revised 0.2 per cent m-o-m gain
(from +0.3 per cent m-o-m) in the previous month. Meanwhile, its Lagging
Economic Index (LAG) for the US jumped 0.4 per cent m-o-m to 119.5, following an unrevised flat m-o-m in March.
Commenting on
the latest data, Justyna Zabinska-La Monica, Senior Manager, Business Cycle
Indicators at the Conference Board, said that April’s fall in the U.S. LEI
confirms that softer economic conditions lay ahead. “Deterioration in
consumers’ outlook on business conditions, weaker new orders, a negative yield
spread, and a drop in new building permits fueled April’s decline,” she added.
Zabinska-La Monica also revealed that the Conference Board expects the real
GDP growth to slow to under 1 per cent over the Q2 to Q3 2024 period.