The Conference Board has published its latest analysis indicating a sharper-than-anticipated decline in the leading U.S. economic indicators for September. The leading economic index dropped by 0.5 percent during the month, following a revised decrease of 0.3 percent in August.
Forecasts by economists had pegged the expected decline at 0.3 percent, contrasting with the initially reported 0.2 percent drop for August. Analyzing the period from March to September, the index fell by 2.6 percent. This compares with a 2.2 percent contraction observed in the prior six-month interval, as reported by the Conference Board.
Justyna Zabinska-La Monica, Senior Manager of Business Cycle Indicators at The Conference Board, remarked, "Continued weakness in factory new orders posed a significant challenge to the U.S. Leading Economic Index (LEI) in September, amidst an ongoing slump in global manufacturing. Furthermore, the yield curve remained inverted, building permits saw a reduction, and consumer projections for future business conditions were subdued."
Zabinska-La Monica further stated, "The LEI persistently indicates uncertainty in forthcoming economic activities, aligning with The Conference Board's projection for moderate economic growth by the end of 2024, carrying into early 2025."
The report also highlighted a 0.3 percent decline in the lagging economic index for September, following a stable reading in August. Conversely, the coincident economic index saw a slight increase of 0.1 percent in September, after experiencing a downward revision to 0.2 percent growth in August.
