Leading Economic Indicators Signal More Growth Ahead

The index of leading economic indicators continues to signal strength ahead, at a December gain of 0.6 percent following upwardly revised gains of 0.5 percent in November and October's 1.3 percent surge that reflected a reversal of hurricane effects.

But the gain in December is led, to an unusual degree, by the ISM's new orders index where unusual strength has not at all translated into similar gains for government data, underscored by the factory workweek which is the only component in the negative column during December. But steady contributions continue to come from the stock market, from low interest rates, and also consumer expectations as well as the report's credit index.

Putting ISM aside, this report is more moderate than robust but is still very positive.

Recent History Of This Indicator:
After swinging sharply on hurricane effects in September and October, the index of leading economic indicators held steady at a healthy 0.4 percent pace in November. December's call, boosted by the stock market and ISM manufacturing orders, is a 0.5 percent gain.