Increase comes in above economists’ consensus forecast
By Ruth Mantell, MarketWatch
WASHINGTON (MarketWatch) — The U.S. economy is “fluctuating around a slow growth trend,” the Conference Board said Thursday as it reported that its leading economic index jumped in September, surpassing analysts’ estimates.
The LEI rose 0.6% last month, a sharp reversal after having declined a downwardly revised 0.4% in August. A prior estimate for August pegged the decline at 0.1%.
“The single biggest challenge remains weak demand, domestically and globally,” said Ken Goldstein, economist at the Conference Board, a New York research group.
Economists polled by MarketWatch had expected a September gain of 0.2% in the LEI, a weighted gauge of 10 indicators designed to signal business-cycle peaks and troughs. See economic calendar.
Six of the LEI’s 10 indicators made positive contributions in September, led by building permits. The biggest negative contribution came from new orders for manufacturers.
Also Thursday, the Federal Reserve Bank of Philadelphia reported that regional manufacturing activity rebounded in October. Read more about Philadelphia manufacturing.
And the federal government said first-time jobless claims for last week surged, up 46,000 from the prior week to 388,000. See: US. initial jobless claims jump to 388,000.
Ruth Mantell is a MarketWatch reporter based in Washington.
