The Leading Economic Index (LEI) stood at 112.1 in August. The pace of growth is consistent with a slowing, but still expanding, economy, explained analysts at Wells Fargo.
Key Quotes:
“The index has 10 components, five of which made a positive contribution in August. A whopping 0.22 percentage point gain from building permits helped offset weakness in the manufacturing sector.”
“The negative contribution there came with little surprise, as the ISM New Orders Index fell below 50 in August to 47.2, tying the cycle low set in 2012.”
“The stock market selloff in August also weighed heavily on the index.”
“The index has eked out only modest gains over the past year, as the year-over-year rate has been trending down and the threemonth annualized rate has flirted with negative territory.”
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