The Conference
Board announced on Thursday its Leading Economic Index (LEI) for the U.S. dropped
0.2 per cent m-o-m in June to 101.1 (2016=100), following an upwardly revised
0.4 m-o-m decline (from -0.5 per cent m-o-m) in May.
Economists had predicted
a decrease of 0.3 per cent m-o-m.
The report also
revealed the Conference Board Coincident Economic Index (CEI) for the US advanced by 0.3 per cent
m-o-m to 112.6 in June after a 0.4 per cent m-o-m increase in the previous month. Meanwhile, its Lagging Economic Index (LAG) for the US edged
up 0.1 per cent m-o-m to 119.5, following a 0.2 per cent m-o-m fall in May.
Commenting on
the latest data, Justyna Zabinska-La Monica, Senior Manager, Business Cycle
Indicators at the Conference Board, said that the decline in the U.S. LEI continued
to be fuelled by gloomy consumer expectations, weak new orders, negative
interest rate spread, and an increased number of initial claims for
unemployment. She also noted that overall the June indicators suggest that
economic activity is likely to continue to lose momentum in the months ahead. “We
currently forecast that cooling consumer spending will push US GDP growth down
to around 1 percent (annualized) in Q3 of this year,” Zabinska-La Monica added.