A report from the Conference Board, released on Thursday, indicated that leading U.S. economic indicators declined slightly less than anticipated in August.
According to the Conference Board, the leading economic index decreased by 0.2 percent in August, following a 0.6 percent decline in July. Economists had forecasted a 0.3 percent reduction in the index.
“August marked the sixth consecutive monthly decline for the U.S. Leading Economic Index (LEI),” noted Justyna Zabinska-La Monica, Senior Manager of Business Cycle Indicators at the Conference Board. “The ongoing decline was mainly driven by new orders, which reached their lowest level since May 2023.”
“A negative interest rate spread, persistently pessimistic consumer expectations for future business conditions, and a drop in stock prices following early-August market turmoil also contributed to the decline,” she continued. “Overall, the LEI continues to signal forthcoming headwinds for economic growth.”
Moreover, the Conference Board reported that the LEI fell by 2.3 percent over the six-month period from February to August 2024. This was a less severe decline compared to the 2.7 percent drop observed from August 2023 to February 2024.
The report further highlighted that the coincident economic index increased by 0.3 percent in August, following a 0.1 percent decline in July. Meanwhile, the lagging economic index remained unchanged in August after a 0.1 percent dip the previous month.
