Leading Indicators in August Take a Sharp Left Turn

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.

ALSO READ: America’s 50 Best Cities to Live