A key measure of U.S. economic activity increased for the third month in a row during December according to figures released on Thursday.
The private-research group the Conference Board reported their Index of Leading Economic Indicators increased 0.1% for the month, following gains of 0.5% in November and 0.2% in October.
The third consecutive increase brings the Index back to the peak May 2002 level and signals a pickup in the pace of economic growth in early 2003 said Newport Communications Senior Economist Jim Haughey.
“Improvements in credit costs, housing permits and stock prices are largely responsible for the turnaround in late 2002. The parallel index of coincident indicators - that measures current economic activity - remained flat again in December but should now be rising during the winter,” he said. “The leading index has been significantly below its long-term trend in the US for about two years.”
December’s numbers were also better than many analysts were expecting, with many forecasting the Index to be flat.
In December, housing permits, average manufacturing workweek and consumer expectations helped offset the negative unemployment figures, the Conference Board said.
Eight of the ten indicators that make up the leading index were higher for December, including interest rate spread and manufacturers' new orders for nondefense capital goods.
Average weekly unemployment claims and stock prices were the only two negative factors that weighed on the leading index.
The private-research group the Conference Board reported their Index of Leading Economic Indicators increased 0.1% for the month, following gains of 0.5% in November and 0.2% in October.
The third consecutive increase brings the Index back to the peak May 2002 level and signals a pickup in the pace of economic growth in early 2003 said Newport Communications Senior Economist Jim Haughey.
“Improvements in credit costs, housing permits and stock prices are largely responsible for the turnaround in late 2002. The parallel index of coincident indicators - that measures current economic activity - remained flat again in December but should now be rising during the winter,” he said. “The leading index has been significantly below its long-term trend in the US for about two years.”
December’s numbers were also better than many analysts were expecting, with many forecasting the Index to be flat.
In December, housing permits, average manufacturing workweek and consumer expectations helped offset the negative unemployment figures, the Conference Board said.
Eight of the ten indicators that make up the leading index were higher for December, including interest rate spread and manufacturers' new orders for nondefense capital goods.
Average weekly unemployment claims and stock prices were the only two negative factors that weighed on the leading index.
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