U.S. Leading Index Improves in June, 2006

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Following two consecutive declines, the U.S. leading index increased 0.1 percent to 138.1 (1996=100) in June, The Conference Board recently reported.

Six of 10 indicators composing the leading index increased last month, including initial claims for unemployment insurance, consumer expectations, real money supply, average weekly manufacturing hours, interest rate spread, and manufacturers' orders for nondefense capital goods.

A key barometer of economic conditions, the leading index signals slow to moderate economic growth in the coming months, according to the report.

The coincident and lagging indices, which reflect current and past economic activity, respectively, also increased in June. The coincident index edged up 0.2 percent to 122.9, while the lagging index rose 0.6 percent to 123.7.

**Taken from the California Association of Realtors Bulletin, dated July 26, 2006.