JUNE US LEADING INDICATORS DOWN 0.1%, COINCIDENT UP 0.1%, LAGGING DOWN 0.3%
The Conference Board said today that its Composite Index of Leading Economic Indicators fell 0.1% in June, matching expectations and following a downwardly revised 0.2% drop in May (previously reported as a 0.1% rise).
June’s decline was driven by falling stock prices, weekly jobless claims, and real money supply, and weakness among the leading indicators continues to be widespread, the Board said.
May’s number was revised lower due to revisions in the manufacturing sector’s average work week and new orders for consumer goods, the Board said.
Meanwhile, the June Coincident Index rose 0.1% after falling 0.1% in May, while the Lagging Index dropped 0.3% following a 0.2% drop prior.
“The domestic economy is showing no sign of strength,” said Conference Board labor economist Ken Goldstein. “The Leading Index has started to signal slow growth since last spring, and the Coincident Index has been flat to declining since last fall.
“The deep financial crisis, a prolonged, intense slump in housing, high gasoline and food prices, and weak consumer confidence and a weak dollar are all combining to produce unrelenting downward pressure on economic activity,” Goldstein said. “This is also why it wouldn’t take much to push the economy so that it’s even weaker in [H2].”