Dive Brief:
- An index aimed at predicting future strength of the U.S. economy edged down last month, eroded by worsening consumer expectations and a decline in building permits, the Conference Board said Friday.
The Leading Economic Index dipped 0.1%to 99.5 after rising 0.2% in July, according to the Conference Board. Four out of the index’s 10 components fell, with measures of credit availability and equity prices helping to avert a deeper drop. During the six months through August, the index declined 0.1%, a slower pace than the 0.6% pullback during the previous six months.- Consumer expectations remained “a significant strain on the index,” Justyna Zabinska-La Monica, senior manager for business cycle indicators at the Conference Board, said in a statement. Economic “growth is expected to slow,” she said. The Conference Board, which forecasts gross domestic product will grow 1.9% this year, marked down its forecast for 2027 GDP growth to 1.8% from 1.9%.
Dive Insight:
The dip in the LEI tracks recent indications that inflation is clouding how consumers view prospects for the economy in the months ahead.
Consumer sentiment in September fell for the second consecutive month as hou...