RTTNews - Monday morning, the Conference Board released a report showing that its index of leading economic indicators increased by more than expected in June, although both the coincident index and lagging index continued to decline.
The report showed that the leading indicators index increased by 0.7 percent in June following an upwardly revised 1.3 percent increase in May. Economists had expected the index to increase by 0.5 percent compared to the 1.2 percent increase originally reported for the previous month.
Seven of the ten components contributed positively to the index, with the interest rate spread, building permits, stock prices, and weekly initial claims among the biggest positive contributors.
The three negative contributors were real money supply, manufacturers' new orders for non-defense capital goods and the index of consumer expectations.
However, the report also showed that the coincident index edged down 0.2 percent in June after falling by 0.3 percent in May.
While personal income less transfer payments and manufacturing and trade sales contributed positively to the index, the negative contributors were employees on nonagricultural payrolls and industrial production.
The Conference Board also said that the lagging index fell 0.7 percent in June following a 0.4 percent drop in the previous month.
Commercial and industrial loans outstanding, average duration of unemployment, and change in labor cost per unit of output were among the largest negative contributors to the index.
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