U.S. Leading Index Continues Upward Trend

U.S. leading index, a key barometer of economic conditions, increased for the second consecutive month in October, The Conference Board recently reported.

The index increased 0.2 percent last month and now stands at 138.3 (1996=100), 0.6 percent below the high of 139.1 reached in January.According to the report, the leading index has declined in five of the last nine months and signals slow economic growth in the coming months.

Throughout the year, declining housing permits have negatively impacted the leading index, offsetting positive contributors such as real money supply and consumer expectations. The coincident and lagging indexes, which measure current and past economic activity, respectively, also increased in October.

The coincident index edged up 0.1 percent to 123.7, while the lagging index rose 0.2 percent to 124.1.

**Taken from the California Association of Realtors Bulletin, dated November 23rd, 2006.