The Conference Board Leading Economic Index® for the U.S. Increased in May

The Conference Board, which was founded in 1916 as a non-partisan, not-for-profit think tank, released today (6-17-21) their May 2021 Leading Economic Index® (LEI) for the U.S. According to the release, the LEI (which is based on ten separate components) increased 1.3% in May, following 1.3% in April, and a 1.4% increase in March. The Conference Board Coincident Economic Index® (CEI) for the U.S. increased 0.4% in May, following a 0.3% increase in April and a 1.3% increase in March. The Conference Board Lagging Economic Index® (LAG) for the U.S. decreased -2.2% in May, following a 3.0% increase in April and -4.2% decrease in March.

In remarks prepared for the February LEI release, Ataman Ozyildirim, Senior Director of Economic Research at The Conference Board said, “After another large improvement in May, the U.S. LEI now stands above its previous peak reached in January 2020 (112.0), suggesting that strong economic growth will continue in the near term. Strengths among the leading indicators were widespread, with initial claims for unemployment insurance making the largest positive contribution to the index; housing permits made this month’s only negative contribution. The Conference Board now forecasts real GDP growth in Q2 could reach 9 percent (annualized), with year-over-year economic growth reaching 6.6 percent for 2021.”