Welcome to the Business Journal Archives
Search for articles below, or continue to the all new BusinessJournalDaily.com now.
Search
Conference Board Economic Index Edges Up in April
NEW YORK -- The Conference Board today reported its composite index of leading economic indicators increased 0.1% in April, following a 0.8% increase in March and no change in February."The Leading Economic Index remains on an upward trend, suggesting continued strong economic and job growth through the third quarter," said Ken Goldstein, chief economist for the business group. "While there are growing concerns about rising gasoline prices this spring, as well as worries about what happens after all the tax refunds have been spent, the indicators are not signaling any softening in America's basic economic fundamentals. Even a short-term hike in interest rates is probably not likely to stifle economic growth or job growth," Goldstein added.The pickup in the growth rate of the leading index last year signaled stronger economic growth, and correspondingly, real GDP increased at a 5.5% annual rate over the last three quarters, the economist noted. The current 3.5% to 4% growth rate of the leading index is signaling the continuation of this relatively strong rate of economic growth in the near term, he said.Four of the 10 indicators that make up the leading index increased in April, according to Goldstein. The positive contributors -- beginning with the largest positive contributor -- were interest rate spread, real money supply, building permits, and stock prices, he said. The negative contributors -- beginning with the largest negative contributor -- were average weekly manufacturing hours, manufacturers' new orders for consumer goods and materials, vendor performance, index of consumer expectations, manufacturers' new orders for nondefense capital goods, and average weekly initial claims for unemployment insurance.Visit the Conference Board at www.conference-board.org"