The Leading Economic Index increased 0.2% in May, while most of the components strengthened, the recent moderation in the index suggests restrained economic growth ahead explained analysts at Wells Fargo.
Key Quotes:
“The LEI grew 0.2 percent in May, indicating economic growth is likely to continue through the end of 2018. However, the recent slowing we have seen in the index’s growth suggests that economic activity is not likely to accelerate.”
“Detractors from the index were related to the labor market and construction.”
“Despite the seemingly unstoppable ascent of the index, the growth in the past three months is the softest since September 2017. The recent moderation in the index’s growth suggests future economic growth will follow suit.”
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