Leading Economic Indicators Signal Steady Growth in Early 2020
February 20, 2020
The first few months of 2020 are expected to see steady growth according to one index. The Conference Board’s leading economic index surged 0.8 percent in January, double what economists had expected. The index is based on 10 leading economic indicators that signal the overall direction of the economy.
The index saw the biggest boost from the number of permits to build new homes. They hit a 13 year high last month, as builders try to keep pace with the housing demand spurred on by low interest rates and the strong job market. The index’s boost was also helped by high consumer confidence, fewer applications for unemployment and cheaper credit.
The Conference Board notes that the index suggests that the current economic expansion will continue at its current rate, about 2 percent, through the first half of the year.