The composite index of Leading Economic Indicators was up 0.5% in May following a revised 0.3% increase in April, first reported as a 0.4% climb, the Conference Board reported Thursday.
The coincident index gained 0.3% in May after a revised 0.2% rise in April, first reported as a 0.1% increase while the lagging index rose 0.4% after a revised 0.3% gain in April, first reported as a 0.2% increase.
The LEI stands at 101.7, the coincident index is at 109.0 and the lagging index is at 123.8 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.
"Recent data suggest the economy is finally moving up from a 2 percent growth trend to a more robust expansion," said the Conference Board economist Ken Goldstein. "The CEI shows the pace of economic activity continued to gain traction in May, while the trend in the LEI remains positive. Going forward, the biggest challenge is to sustain the rise in income growth which will drive consumption."
"May's increase in the LEI, the fourth consecutive one, was broad based," said Ataman Ozyildirim, an economist at The Conference Board. "Housing permits held the index back slightly but the LEI still points to an expanding economy and its pace may even pick up in the second half of the year."
