The US economy is slowly picking up momentum, according to an index from private research group, the Conference Board Its index of leading economic indicators rose 0.1pc in December, the third consecutive increase. The upward trend follows a string of declines for the index from May to September 2002. The US Federal Reserve cut interest rates by 50 basis points in November, declaring that the economy was going through a "soft patch" "Three consecutive increases in the leading economic indicators suggests that the economy might turn in a better performance in the first quarter of 2003 than it did in the second half of last year," said Ken Goldstein, Conference Board economist. "The indicator is that the economy may be moving away from the soft spot it hit this winter. Eight of the ten indicators that make up the index increased in December, while two, initial jobless claims and stock prices, declined. US companies shed more than 100,000 last month, according to recent government figures Earlier this afternoon, the Labour Department reported that initial claims for unemployment benefits rose 18,000 to a seasonally adjusted 381,000 for the week ended 18 January. //www.fxcentre.com