The October LEI report released yesterday was up .7%, the same reading as in September. What it means is that the economy should remain growing in the next few months. However, with states starting to restrict consumers once again, that may change by next month.
The LEI is comprised of 10 components all of which are leading indicators. The ten are average: weekly hours worked, the average number of initial applications for unemployment benefits, the volume of new manufacturers’ orders for consumer goods, new orders index, the volume of new orders for capital goods, new building permits, level of the S&P 500, inflation-adjusted monetary supply (M2), the spread between long and short interest rates, and the average of consumer expectations for business conditions forward looking for the next six to twelve months.