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U.S. leading economic indicator rises strongly in December -Breaking

by Mike Robinson

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WASHINGTON (Reuters] – The gauge of U.S. economy activity for the future increased in December. It suggests the expansion would continue despite difficulties from COVID-19 and expected interest rate hikes from Federal Reserve.

According to the Conference Board, Friday’s Leading Economic Index increased 0.8% in December after an increase of 0.7% for November. According to economists, the last month’s rise was similar to what they had expected.

Ataman Ozyildirim is the senior director for economic research at The Conference Board. He stated, “The U.S. LEI finished 2021 on a rising track, suggesting that the economy will continue its expansion well into the spring.”

The Fed’s expectation of interest rate increases and headwinds caused by the Omicron variant, labor snafus, inflationary pressures and labor shortages could slow down economic growth in the first quarter.

Conference Board forecasts that GDP growth in the first three quarters would be slow at 2.2% per year. The Conference Board forecasts a 3.5% increase this year.

Next week, the government will publish its fourth quarter GDP snapshot.

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