U.S. Economy’s Recovery Slows In July
The U.S. economy showed signs of growth in July, although at a slower pace than in May and June. The Conference Board’s Leading Economic Index (LEI) for the U.S. increased 1.4 percent in July to 104.4, following increases of three percent in June and 3.1 percent in May.
“The U.S. LEI increased for the third consecutive month in July, albeit at a slower pace than the sharp increases in the previous two months,” says Ataman Ozyildirim, senior director of economic research at The Conference Board. “Despite the recent gains in the LEI, which remain fairly broad-based, the initial post-pandemic recovery appears to be losing steam. The LEI suggests that the pace of economic growth will weaken substantially during the final months of 2020.”
The Conference Board’s Coincident Economic Index, a measure of current economic activity, for the U.S. increased 1.2 percent in July to 99.2, following a 2.9-percent increase in June and a 2.4-percent increase in May. Its Lagging Economic Index, an indicator representing changes that come only after the economy has begun to follow a particular trend, decreased one percent in July to 109.2, following a 2.3-percent decline in both June and May.