The composite index of Leading Economic Indicators was up 0.9% in July following a revised 0.6% increase in June, first reported as a 0.3% climb, the Conference Board reported Thursday.
The coincident index gained 0.2% in July after a revised 0.3% rise in June, first reported as a 0.2% increase while the lagging index rose 0.2% after an unrevised 0.5% gain in June.
The LEI stands at 103.3, the coincident index is at 109.6 and the lagging index is at 124.6 The LEI has a baseline of 100, which reflects the level in 2004.
Economists polled by Thomson Reuters predicted LEI would grow 0.6% in the month.
"The pace of economic activity remained reasonably strong in July," said the Conference Board economist Ken Goldstein. "Although retail sales were a little disappointing, hiring and industrial activity improved. July's increase in the LEI, coupled with its accelerating growth trend, points to stronger economic growth over the coming months."
"The LEI improved sharply in July, suggesting that the economy is gaining traction and growth should continue at a strong pace for the remainder of the year," said Ataman Ozyildirim, an economist at The Conference Board. "Although housing has been one of the weakest components this year, the sharp gain in building permits helped boost the LEI in July. Financial markets and labor market conditions have also supported recent gains, but business spending indicators remain soft and their contribution marginal."
