The Leading Economic Index gained traction in July and expects to continue at a strong pace for the rest of the year. Housing was one of the weaker components this year, but a handy gain in building permits helped boost July. Recent labor market conditions supported these gains, but business spending remained soft.
The Coincident Economic Index increased 0.2% in July to 109 after a 0.3% increase in June, while the Lagging Economic Index increased 0.2% in July to 124.6 following a 0.5% increase in June.
One word to the wise: Many of these “leading indicators” are already known, so the nature of how leading these are for the market and the economy can be brought up for debate.
Stocks have remained firm, with the S&P 500 up almost four points and the Dow up almost 50 points. The S&P 500 is just 10 points shy of the 2,000 mark and the DJIA is above 17,000.
A quote from the press release:
Although retail sales were a little disappointing, hiring and industrial activity improved. July’s increase in the LEI, coupled with its accelerating growth trend, points to stronger economic growth over the coming months.
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