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Thursday, July 21, 2005
U.S. Leading Economic Indicators Index Rose 0.9% in June

The U.S. index of leading economic indicators rose a greater-than-expected 0.9 percent for June, a sign that growth may be starting to accelerate this month. The report shows the first major revision in how the index was compiled since 1996.

Higher consumer confidence, stock prices and building permits helped drive up the Conference Board's index after it was unchanged in May, the New York-based research group said today. The median forecast among 57 economists surveyed by Bloomberg News called for an increase of 0.5 percent.

"The consumer is steady and in good shape, labor income is accelerating, and that's continuing to offset the drag from gasoline prices,'' Stephen Stanley, chief economist at RBS Greenwich Capital in Greenwich, Connecticut, said before the report. "Obviously, housing is doing quite well. And in manufacturing we're starting to see a little bit of a comeback.''

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