U.S. Leading Economic Indicators and related composite indexes

According to The Conference Board, the leading index of economic indicators increased sharply in January. It has increased in five of the last six months - 2.3 percent from July 2005 to January 2006 (a 4.7 percent annual rate). The main contributors to January's large gain were initial claims for unemployment insurance (inverted), real money supply, and building permits. "The Coincident Economic Indicators have been rising moderately but steadily in recent months, suggesting the economy is sustaining a relatively moderate pace. The Leading Economic Index, however, rose sharply in three of the last four months. That could be a signal of a faster pace this spring,” says Ken Goldstein, Labor Economist at The Conference Board.