Leading Indicators in August Take a Sharp Left Turn
The Conference Board has released the numbers for leading economic indicators in the month of August.
The Conference Board released the numbers for leading economic indicators in the month of August. The reading on leading indicators was 0.2%, against a Bloomberg estimate of 0.4%. The previous, revised reading for leading indicators was 1.1% for the month of July.
July took a sharp uptick when it was revised to 1.1% from its original reading of 0.9%. This was a large gain in the index, compared to the revised 0.6% from June and the 0.6% in May.
Considering recent moves within the index, it is expected that there will continue to be moderate growth for the rest of the year.
Building permits composed the biggest negative of the index and dropped 5.6% in August. Permits have been dragging the index down over the course of the year. The rise in unemployment claims in August was the second largest negative.
On the other hand, the largest positive was the credit spread, which was reflective of recent stimulating by the Federal Reserve. This is followed by the strong new orders put forth by the ISM, and the credit component that implies a rise in lending.
This report does act as a reminder that housing is still a rough spot for the economy, as it has been all year.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
