The Conference Board Leading Economic Index® (LEI) for the U.S. Increased in December

January 28, 2021 10:00 AM EST

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NEW YORK, Jan. 28, 2021 /PRNewswire/ --

This month's release incorporates annual benchmark revisions to the composite economic indexes, which bring them up-to-date with revisions in the source data. These revisions do not change the cyclical properties of the indexes. The indexes are updated throughout the year, but only for the previous six months. Data revisions that fall outside of the moving six-month window are not incorporated until the benchmark revision is made and the entire histories of the indexes are recomputed. As a result, the revised indexes, in levels and month-on-month changes, will not be directly comparable to those issued prior to the benchmark revision.

 

For more information, please visit our website at http://www.conference-board.org/data/bci.cfm or contact us at indicators@conference-board.org

The Conference Board Leading Economic Index® (LEI) for the U.S. increased 0.3 percent in December to 109.5 (2016 = 100), following a 0.7 percent increase in November and a 0.9 percent increase in October.

"The US LEI's slowing pace of increase in December suggests that US economic growth continues to moderate in the first quarter of 2021. Improvements in the US LEI were very broad-based among the leading indicators, except for rising initial claims for unemployment insurance and a mixed consumer outlook on business and economic conditions," said Ataman Ozyildirim, Senior Director of Economic Research at The Conference Board. "While the resurgence of COVID-19 and weak labor markets remain barriers to growth, The Conference Board expects the economy to expand by at least 2.0 percent (annual rate) in Q1 and then gain momentum throughout the year."

The Conference Board Coincident Economic Index® (CEI) for the U.S. increased 0.3 percent in December to 103.3 (2016 = 100), following a 0.1 percent increase in November and a 0.6 percent increase in October.

The Conference Board Lagging Economic Index® (LAG) for the U.S. increased 0.1 percent in December to 107.6 (2016 = 100), following a 0.1 percent increase in November and a 0.2 percent increase in October.

About The Conference Board Leading Economic Index® (LEI) for the U.S. The composite economic indexes are the key elements in an analytic system designed to signal peaks and troughs in the business cycle. The leading, coincident, and lagging economic indexes are essentially composite averages of several individual leading, coincident, or lagging indicators. They are constructed to summarize and reveal common turning point patterns in economic data in a clearer and more convincing manner than any individual component – primarily because they smooth out some of the volatility of individual components.

The ten components of The Conference Board Leading Economic Index® for the U.S. include:

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 bonds less federal funds Average consumer expectations for business conditions

For full press release and technical notes: http://www.conference-board.org/data/bcicountry.cfm?cid=1

For more information about The Conference Board global business cycle indicators: http://www.conference-board.org/data/bci.cfm

About The Conference Board The Conference Board is the member-driven think tank that delivers trusted insights for what's ahead. Founded in 1916, we are a non-partisan, not-for-profit entity holding 501 (c) (3) tax-exempt status in the United States. www.conference-board.org

 

Summary Table of Composite Economic Indexes

2020

6-month

Oct

Nov

Dec

Jun to Dec

Leading Index

108.4

109.2

r

109.5

p

  Percent Change

0.9

r

0.7

r

0.3

p

6.5

  Diffusion

85

80

70

90

Coincident Index

102.9

r

103.0

r

103.3

p

  Percent Change

0.6

0.1

r

0.3

p

4.4

  Diffusion

100

75

75

100

Lagging Index

107.4

r

107.5

r

107.6

p

  Percent Change

0.2

r

0.1

r

0.1

p

-1.4

  Diffusion

35.7

50.0

35.7

35.7

p  Preliminary     r  Revised

Indexes equal 100 in 2016

Source:  The Conference Board

 

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SOURCE The Conference Board



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