Leading economic index rises in January

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Leading economic index rises in January
from MarketWatch.com - MarketPulse
WASHINGTON (MarketWatch) -- The economy will expand in the near term, but at a slow pace, the Conference Board said Thursday as it reported that its leading economic index nudged higher in January. The leading economic index rose 0.2% in January, below analysts' estimates of a 0.3% gain. "The indicators point to an underlying economy that remains relatively sound but sluggish...The biggest risk, however, is the adverse impact of cuts in federal spending," said Ken Goldstein, a Conference Board economist. The LEI is a weighted gauge of 10 indicators designed to signal business cycle peaks and troughs. Among the 10 indicators tracked by the Conference Board's index, six made positive contributions in January, led by the interest rate spread. The largest negative contribution came from consumers' expectations. In December, the LEI rose an unrevised 0.5%.