Leading Economic Indicators Bounce Back Strongly

The index of leading economic indicators had been weak in May and June but bounced back strongly in July, up 0.5 percent on wide strength among components including housing permits, unemployment claims, stock prices and the report's credit index. Yet manufacturing components were still weak and the yield spread component, which has been the great strength of this report over the past 10 years, came in negative for a second straight month. The Conference Board's conclusion: "While the LEI suggests the US economy will continue to expand in the second half of 2019, it is likely to do so at a moderate pace."