U.S. Economy’s Growth Slowed In September
The U.S. economy’s pace of improvement slowed in September, suggesting growth may be losing momentum. The Conference Board Leading Economic Index (LEI) for the U.S. increased 0.7 percent in September to 107.2, following increases of 1.4 percent in August and two percent in July.
“The US LEI increased in September, driven primarily by declining unemployment claims and rising housing permits. However, the decelerating pace of improvement suggests the U.S. economy could be losing momentum heading into the final quarter of 2020,” says Ataman Ozyildirim, senior director of economic research at The Conference Board. “The U.S. economy is projected to expand in Q4, but at a substantially slower rate of 1.5 percent (annual rate), according to The Conference Board’s GDP forecast. Furthermore, downside risks to the recovery may be increasing amid rising new cases of COVID-19 and continued labor market weakness.”
The Conference Board Coincident Economic Index, a measure of current economic activity, for the U.S. increased 0.2 percent in September to 101.7, following a 0.8-percent increase in August and a 1.6-percent increase in July. Its Lagging Economic Index, an indicator representing changes that come only after the economy has begun to follow a particular trend, for the U.S. decreased 0.1 percent in September to 107.6, following a 0.1-percent decrease in August and a one-percent decrease in July.