We had more positive economic news this morning. The Index of Leading Economic Indicators, which looks at economic growth over the next three to six months, rose by 0.9% which was higher than expectations.
Economists forecast the leading indicators index would increase 0.7 percent, according to the median of 61 estimates in a Bloomberg News survey. Projections ranged from a gain of 0.5 percent to 1.2 percent.
Six of the 10 indicators in today’s report contributed to the gain, led by the difference between short- and long-term borrowing costs and fewer jobless claims. A longer factory workweek, higher stock prices, more building permits and a rise in money supply also helped the index. Weaker consumer expectations, faster supplier deliveries and fewer capital goods orders were a drag on the index. Consumer goods orders had no effect on the index.
The economy still needs to get much better for it to create more jobs.