US leading indicators index rose 0.1% in May

19 June 2008 16:51  [Source: ICIS news]

WASHINGTON (ICIS news)--The index of leading US economic indicators rose by 0.1% in May in contrast to steady declines during the second half of last year, the Conference Board said on Thursday, noting that the US economy remains weak.

 

The New York City-based Conference Board, a 92-year-old business analysis group, said that May’s slim gain was a repeat of April’s 0.1% advance and puts the closely watched leading index at 102.1 as measured against the baseline of 100 in 2004.

 

“The leading index has risen in the past two months, following a steady decline that began in the middle of last year,” the board said.

 

“However, the number of index components that are falling continues to be greater than the number of components that are rising over the past six months,” the board added, suggesting that the narrow positive gains in April and May do not herald a recovery.

 

The board’s leading index is made up of ten economic indicators, including stock prices, interest rates, manufacturers’ orders, building permits and unemployment claims, among others.

 

The slim gain in May was attributed chiefly to the interest rate spread, stock prices gains and manufacturers' new orders for consumer products and capital goods, the board said.

 

However, gains in those four categories were almost wholly offset by declines among five of the other six indicators, including the real money supply, consumer expectations, building permits, supplier deliveries and weekly claims for unemployment benefits.

 

The tenth indicator category, the average weekly manufacturing hours, held steady in May, the board said.

 

In addition, the board said, “weaknesses among the leading indicators have remained fairly widespread in recent months”.

 

“Taken together, the behaviour of the composite indexes so far continues to suggest weak economic activity in the near term,” the board said.

 

To discuss issues facing the chemical industry go to ICIS connect

By: Joe Kamalick
+1 713 525 2653

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly