Leading Economic Indicators Shoot Up In April

The index of leading economic indicators shot up 0.6 percent to confirm that April was a solid month for economic data. This is the first gain for this index, which has been very flat, since November. The rate spread remains the top positive reflecting the Fed's stimulative policy. But manufacturing is now popping into the plus column with factory hours the second largest positive. Building permits are another major positive as are unemployment claims which have since reversed course unfortunately. The only negative of the 10 components is consumer confidence where, however, early indications for May are pointing to a bounce back. Other readings include 0.3 percent gains for both the coincident and lagging indexes.

Recent History Of This Indicator:
The index of leading indicators is expected to rise 0.4 percent in April following a 0.2 percent gain in March. April is expected to be pulled higher by the decline in initial unemployment claims and a modest gain in the stock market. Negatives in April will be slowing growth in new orders and easing in that month's consumer confidence report. Building permits, which will be released earlier in the week, are always a wildcard.