Leading Economic Indicators Fall

Weakness in the factory workweek and the ISM new orders index pulled down the index of leading economic indicators which fell 0.2 percent in August following July's very strong and upward revised gain of 0.5 percent. Another negative in August, one now reversing this month, was a rise in initial jobless claims. Six of 10 components are in the negative column in the August report with the rate spread, reflecting Federal Reserve accommodation, once again the leading positive. This report has been up and down and all year, pointing on net to slow growth for the economy.

Recent History Of This Indicator:
The index of leading indicators, up 0.4 percent in July, has been solid in recent months and pointing to second-half strength for the economy. Low interest rates and strength in the stock market are likely to be two strengths for the August report though weakness in the ISM new orders index and factory workweek are likely to be two negatives.