The Conference Board's index of leading economic indicators increased for the third straight month in July but at a far slower pace than in the previous two months.
Why it matters: "Despite the recent gains in the LEI, which remain fairly broad-based, the initial post-pandemic recovery appears to be losing steam," Ataman Ozyildirim, senior director of economic research at The Conference Board, said in a statement accompanying the index's release.
- "The LEI suggests that the pace of economic growth will weaken substantially during the final months of 2020."
What it means: The 10 components of index for the U.S. are...
- Average weekly hours, manufacturing
- Average weekly initial claims for unemployment insurance
- Manufacturers’ new orders, consumer goods and materials
- ISM index of new orders
- Manufacturers’ new orders, nondefense capital goods excluding aircraft orders
- Building permits, new private housing units
- Stock prices, 500 common stocks
- Leading Credit Index
- Interest rate spread, 10-year Treasury yields less Fed funds rate
- Average consumer expectations for business conditions