Growth Of U.S. Economy Picks Up In June
The Conference Board’s Leading Economic Index (LEI) for the U.S. indicated an improving economy in June, registering a two-percent increase last month to 102, following a 3.2-percent increase in May and a 6.3-percent decrease in April. However, its outlook on the economy remains soft.
“The June increase in the LEI reflects improvements brought about by the incremental reopening of the economy, with labor market conditions and stock prices, in particular, contributing positively,” says Ataman Ozyildirim, senior director of economic research at The Conference Board. “However, broader financial conditions and the consumers’ outlook on business conditions still point to a weak economic outlook. Together, with a resurgence of new COVID-19 cases across much of the nation, the LEI suggests that the U.S. economy will remain in recession territory in the near-term.”
The Conference Board’s Coincident Economic Index, a measure of current economic activity, for the U.S. increased 2.5 percent in June to 96.7, following a 1.6-percent increase in May and a 11.8-percent decrease in April. Its Lagging Economic Index, an indicator representing changes that come only after the economy has begun to follow a particular trend, decreased in December, slipping 2.5 percent to 110.8. This follows a 1.2-percent decrease in May and a 3.1-percent increase in April.