The Conference
Board revealed on Thursday that its Leading Economic Index (LEI) for the U.S. slipped
0.2 per cent m-o-m in August to 100.2 (2016=100), following an unrevised
0.6 m-o-m decline in July.
Economists had forecast
a drop of 0.3 per cent m-o-m.
The report also
showed the Conference Board Coincident Economic Index (CEI) for the U.S. jumped
by 0.3 per cent m-o-m to 112.7
in August after a downwardly revised 0.1 per cent m-o-m fall (from flat m-o-m) in the previous month. Meanwhile,
its Lagging Economic Index (LAG) for the U.S. held steady at 119.5, following an unrevised 0.1 per cent m-o-m drop in
July.
Commenting on
the latest data, Justyna Zabinska-La Monica, Senior Manager, Business Cycle
Indicators at the Conference Board, noted that the U.S. LEI remained on a
downward trajectory last month and posted its sixth straight monthly decline. She
also unveiled that the Conference Board expects U.S. real GDP growth to lose
momentum in the second half of 2024 as higher prices, elevated interest rates,
and mounting debt erode domestic demand. Zabinska-La Monica, however, added
that in the Fed’s September 2024 Summary of Economic Projections, policymakers
suggested 100 basis points of interest rate cuts are likely by the end of this
year, which should lower borrowing costs and support stronger economic activity
in 2025.