Conference Board's Index of Leading Economic Indicators Dips in August

The Conference Board reports today that the Composite Index of Leading Economic Indicators declined 0.2% in August, following a 0.1% decline in July, and a 1.1% increase in June.

Says The Conference Board’s Labor Economist Ken Goldstein: “The leading economic indicators began to lose a little momentum before the hurricanes and flooding. The spike in energy prices is one reason for this. Domestically, business investment appeared to be headed toward a moderate pace in the third quarter. Hiring on the order of perhaps about 150,000 per month appeared to be in line with forward indicators of market activity. These pre-storm investment and hiring intentions reflect a level of caution about pricing and profit potential. Without a doubt, the storms and flooding will briefly lower investment spending and hiring. The net result is likely to be a slower economy for a few months, or until the rebuilding efforts go into full swing.”

The Conference Board also reports that the Coincident Index increased 0.2% in August, following a 0.1% increase in July, and a 0.4% increase in June. The Lagging Index declined 0.1% in August, following a 0.3% increase in July, and a 0.2% increase in June.