Leading Economic Indicators Gain Ground In July

A bounce back in the factory workweek led a 0.4 percent gain for July's index of leading economic indicators. Stock prices and low interest rates were also strong positives in the month, two factors that are likely to be strengths for the August index as well. Unemployment claims were also a positive in July but have been since been edging higher while consumer expectations, the only negative in July, are not likely to show much life in August either based on this month's early indications. Otherwise, this report is solid and hints at a second-half lift for the economy that many expect.

Recent History Of This Indicator:
The index of leading indicators is expected to rise a moderate 0.2 percent in July following a 0.3 percent gain in August. Jobless claims fell in July while stock prices went up and the factory workweek lengthened. Consumer expectations are likely to be a negative. This report has been mixed this year and has been offering no better than soft signals on the economic outlook.