Conference Bd: Sep US Leading Index Up 1.0%, Above Expectations

Dow Jones | Thu, Oct 22 2009, 14:00 GMT
The index of leading economic indicators rose for the sixth consecutive month in September. The leading index increased 1.0% last month, after a revised 0.4% gain in August, the Conference Board reported Thursday. August's gain was originally reported as 0.6%.

Economists surveyed by Dow Jones Newswires had expected an increase of 0.8% in the September index.

"The LEI has risen for six consecutive months and the coincident economic index has increased in two of the last three months. These numbers strongly suggest that a recovery is developing," said Ken Goldstein, economist at the board. "However, the intensity of that recovery will depend on how much, and how soon, demand picks up."

Eight of the 10 leading indicators increased in September. The most positive were the interest rate spread, consumer expectations and the inverted trend in jobless claims. The negative contributors were weekly manufacturing hours and building permits.

The coincident index was unchanged in September after rising a revised 0.1% in August, which was originally reported as unchanged.

The lagging index dropped 0.3% last month, after a revised 0.2% fall in August that was first reported as a 0.1% drop.

-By Kathleen Madigan, Dow Jones Newswires; 212-416-2466; kathleen.madigan@dowjones.com

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