The composite index of Leading Economic Indicators was up 0.2% in August following a revised 1.1% increase in July, first reported as a 0.9% climb, the Conference Board reported Friday.
The coincident index gained 0.2% in August after a revised 0.1% rise in July, first reported as a 0.2% increase while the lagging index rose 0.3% after a revised 0.3% rise in July, first reported as a 0.2% gain.
The LEI stands at 103.8, the coincident index is at 109.7 and the lagging index is at 125.1 The LEI has a baseline of 100, which reflects the level in 2004.
Economists polled by Thomson Reuters predicted LEI would grow 0.4% in the month.
"The leading indicators point to an economy that is continuing to gain traction, but most likely won't repeat its stellar second quarter performance in the second half," said the Conference Board economist Ken Goldstein. "Meanwhile, the CEI, a measure of current economic activity, continued to expand through August, amid improving personal income, employment and retail sales. However, industrial production registered a slight decrease for the first time in seven months."
"The LEI continued to rise in August, although at a slower rate than in July," said Ataman Ozyildirim, an economist at The Conference Board. "The LEI's six-month growth trend has been held back slightly by lackluster contributions from housing permits and new orders for nondefense capital orders. Despite concerns about investment picking up, the economy should continue expanding at a moderate pace for the remainder of the year."
