Market Commentary

LEI – Leading Economic Indicator

gap graph

The monthly Leading Economic Indicator report stayed steady at 1.3%. This is supposed to tell us what the economy is going to do in the next few months. Being positive is saying that economic growth will occur in the new 3 to 6 months.

What components make up that report are:

  • Average weekly hours, manufacturing
  • Average weekly initial claims for unemployment insurance
  • Manufacturers’ new orders, consumer goods and materials
  • ISM® Index of New Orders
  • Manufacturers’ new orders, nondefense capital goods excluding aircraft orders
  • Building permits, new private housing units
  • Stock prices, 500 common stocks
  • Leading Credit Index™
  • Interest rate spread, 10-year Treasury bonds less federal funds
  • Average consumer expectations for business conditions