By Ruth Mantell, MarketWatch
WASHINGTON (MarketWatch) — The economy is expected to continue strengthening, possibly picking up this spring and summer, the Conference Board said Friday.
The index of leading economic indicators grew 0.4% in January, led by the interest-rate spread and manufacturing hours, according to the research group.
“This fourth consecutive gain in the LEI reflected fairly widespread strength among its components, pointing to somewhat more positive economic conditions in early 2012,” said Ataman Ozyildirim, a Conference Board economist.
Economists polled by MarketWatch had expected a January gain of 0.5%. See economic calendar. The reading for December was revised to 0.5% from a prior estimate of 0.4%.
The LEI is a weighted gauge of 10 indicators that are designed to signal business cycle peaks and troughs.
Among the 10 indicators that make up the LEI, seven made positive contributions in January: interest-rate spread, average weekly manufacturing hours, stock prices, leading credit index, ISM new orders index, building permits, and manufacturers’ new orders for consumer goods and materials.
There were three negative contributors: consumer expectations for business conditions, initial claims for jobless benefits, and manufacturers’ new orders for nondefense capital goods, excluding aircraft.
Elsewhere Friday, the U.S. Labor Department reported that consumer prices rose in January at the fastest pace since September. Read more about inflation.
