Leading Economic Indicators Trending Lower

The index of leading economic indicators continues to trend lower and increasingly signals second-half slowing for the US economy. The index is unchanged in May's report with April downwardly revised to only a 0.1 percent gain. May's weakness was centered in the stock market and also manufacturing indications while the contribution from the US yield spread, which historically is very favorable, is now neutral reflecting the flattening underway in the yield curve.