Measure of U.S. economy rose 0.4 percent in July
WASHINGTON (AP) - A measure of future U.S. economic activity recovered in July following a sharp drop in June, providing further evidence of an economy that is regaining some momentum.
The Conference Board said Friday that its index of leading economic indicators increased 0.4 percent in July after falling 0.4 percent in June.
The July strength came from an improvement in a number of components with the largest contributions coming from a big jump in applications for housing permits and declines in applications for unemployment benefits.
The rebound last month put the index at 95.8, matching its May level, which had been the highest reading in four years.
Economists viewed the July result as evidence that the economy has regained its footing after a sluggish spring that had raised concerns that the country could be in danger of slipping into another recession.
"The expansion continues, no double-dip recession, just continued moderate, sub-par growth," said John Silvia, chief economist at Wells Fargo.
He said he was looking for economic growth of around 1 percent to 2 percent at an annual rate in the current July-September quarter. The economy slowed to growth at a rate of just 1.5 percent in the April-June quarter after growing at a 2 percent pace in the first three months of this year.
The gain in the leading indicators was the latest report showing an improved outlook. This week, there were reports that factory production increased in July and homebuilders were growing more confidence in the housing recovery. Earlier, the government reported that job growth rose to 163,000 for July, the best showing in five months.
The index of leading indicators is a compilation of 10 forward pointing indicators.
For the six months ending in July, the index has been rising at an annual rate of 2.3 percent which is an improvement over the 0.6 percent annual rate of growth turned in during the previous six months.
The Conference Board said Friday that its index of leading economic indicators increased 0.4 percent in July after falling 0.4 percent in June.
The July strength came from an improvement in a number of components with the largest contributions coming from a big jump in applications for housing permits and declines in applications for unemployment benefits.
The rebound last month put the index at 95.8, matching its May level, which had been the highest reading in four years.
Economists viewed the July result as evidence that the economy has regained its footing after a sluggish spring that had raised concerns that the country could be in danger of slipping into another recession.
"The expansion continues, no double-dip recession, just continued moderate, sub-par growth," said John Silvia, chief economist at Wells Fargo.
He said he was looking for economic growth of around 1 percent to 2 percent at an annual rate in the current July-September quarter. The economy slowed to growth at a rate of just 1.5 percent in the April-June quarter after growing at a 2 percent pace in the first three months of this year.
The gain in the leading indicators was the latest report showing an improved outlook. This week, there were reports that factory production increased in July and homebuilders were growing more confidence in the housing recovery. Earlier, the government reported that job growth rose to 163,000 for July, the best showing in five months.
The index of leading indicators is a compilation of 10 forward pointing indicators.
For the six months ending in July, the index has been rising at an annual rate of 2.3 percent which is an improvement over the 0.6 percent annual rate of growth turned in during the previous six months.
Liberal rags like this want soooo bad to print positive economic news so their man can be re-elected, so the economy stinks and your man hasn't done anything to fix it so time to boot him.
 @Commonsense Thanks for the right-leaning commentary. How about being objective yourself before being hypocritical?
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If you think someone else could do better, use your vote to speak, not your mouth.
@BluefireJaguar @Commonsense Unfortunately in the US, lobbyists dollars speak much louder then our votes. There is no democracy, freedom, or rule of law and therefore, no society where you have bought off, bribed up lawmakers. I think its long past time to get vocal with our mouths.
@Major_Payne Yes, I am involved in the community however, I am not involved with either of the right wing US political parties if thats what you're wondering.
 @T_BONE_WALKER      So can I ask what you're doing about it?
Are you involved in your community, political party or voting?Â
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@Major_Payne Yes the facts are often negative in the US lately.
A bit negative there T_Bone.
Did I offend you by speaking truth sorry.