Leading Economic Indicators in U.S. Continued to Increase in October

The Conference Board Leading Economic Index® (LEI) for the U.S. increased 0.7% in October to a reading of 108.2 (2016 = 100), this following a similar 0.7% increase in September and a 1.6% increase in August. In a prepared statement to accompany the release of the LEI, Ataman Ozyildirim, Senior Director of Economic Research at The Conference Board said, “The US LEI rose again in October, with widespread improvements despite weakness from housing permits and consumers’ outlook on economic conditions. However, the leading index has been decelerating in recent months, which suggests growth will moderate significantly in the final months of 2020, slowing down from the unusually rapid pace in Q3.” Ozyildirim, went onto say that, “Furthermore, downside risks to growth from a second wave of COVID-19 and high unemployment persist. While The Conference Board projects the US economy will expand in Q4, the pace of growth is unlikely to exceed 2.2% (annual rate).”