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Last Update: 26-Jan-12 11:33 ET
Leading Indicators Still Point Higher
The Leading Economic Index increased 0.4% in December on top of a downwardly revised 0.2% increase (from 0.5%) in November and a 0.6% increase in October. The December reading, which included major changes to the components of the index and the calculation of the index, was below the Briefing.com consensus estimate of 0.7%.
The string of positive numbers is reflective of a growing economy, and, as the Conference Board notes, points to a somewhat positive outlook for a strengthening domestic economy.
The change in index components is the first since 1996 and it involved incorporating a new Leading Credit Index and omitting the real M2 component starting in 1990, replacing the ISM Supplier Delivery Index with the ISM New Orders Index, replacing the Univ. of Michigan Consumer Expectations Index with an equally weighted average of the Michigan number and the Conference Board's own Consumer Confidence survey, and replacing New Orders for Nondefense Capital Goods with New Orders for Nondefense Capital Goods excluding Aircraft.
The string of positive numbers is reflective of a growing economy, and, as the Conference Board notes, points to a somewhat positive outlook for a strengthening domestic economy.
The change in index components is the first since 1996 and it involved incorporating a new Leading Credit Index and omitting the real M2 component starting in 1990, replacing the ISM Supplier Delivery Index with the ISM New Orders Index, replacing the Univ. of Michigan Consumer Expectations Index with an equally weighted average of the Michigan number and the Conference Board's own Consumer Confidence survey, and replacing New Orders for Nondefense Capital Goods with New Orders for Nondefense Capital Goods excluding Aircraft.
