Economic index rises third month in a row
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Chart: Index of leading economic indicators
Advertiser News Services
The U.S. index of leading economic indicators rose for a third straight month in June, suggesting growth may accelerate by year-end.
A gain in consumer confidence last month helped push the Conference Board's gauge up 0.3 percent after a 0.4 percent rise in May.
The New York-based research group nonetheless said that the outlook "remains fragile."
That assessment follows Federal Reserve Chairman Alan Greenspan's report to Congress that the economy has improved while remaining at risk of weakness.
Reports yesterday on the U.S. trade deficit and initial jobless claims gave a boost to prospects without assuring that the expansion will pick up.
The trade gap narrowed in May to a 16-month low of $28.3 billion as imports of consumer goods and business equipment sank, the Commerce Department reported. While that suggests slumping demand, it also means that foreign producers rather than U.S. factories have absorbed the effect of the decline. Exports rose, led by pharmaceuticals and other consumer goods.
Meanwhile, the government's inflation gauge, the consumer price index, increased 0.2 percent in June, the Labor Department said Wednesday. The index was up 3.8 percent for the year. The "core" rate of inflation, which excludes volatile energy and food prices, rose 0.3 percent in June compared with just 0.1 percent in May.
