The closely watched US leading economic indicators point to a better economy in the second half of the year, the Conference Board said today. The index of leading indicators rose 0.1pc in June after soaring a revised 1.1pc in May. It's the third straight increase in the index, which is designed to forecast economic performance six to nine months in advance. "This suggests that the flat trend in the leading index over the past year may have ended, but additional months of growth are needed to determine if an upward trend has indeed developed," the Board said.
The indictors "are suggesting a better economic performance in the second half," said Ken Goldstein, an economist at the Board. However, he added, "Even if better growth develops in the third quarter, it could be the first quarter of 2004 before the labour markets really improve." Economists were expecting the index to rise 0.2pc in June. Four of the 10 indicators rose in June, led by money supply, stock prices, jobless claims and building permits. Four other indicators fell, led by consumer expectations, vendor performance, interest rate spreads and orders for consumer goods. //www.fxcentre.com