Leading indicators show economy remains sluggish
NEW YORK (AP) - May 19, 2008 The New York-based Conference Board said its forecast of future
economic activity rose 0.1 percent in April, matching a 0.1 percent
increase in March. Economists had expected a 0.1 decrease in April.
The index is designed to forecast economic activity in the next
three to six months based on 10 economic components, including
stock prices, building permits and initial claims for unemployment
benefits.
"These data certainly reflect a weak economy but not one in
recession," said Ken Goldstein, labor economist at The Conference
Board. The small increases in March and April, which followed five
months of decline, could be a signal the economy may not weaken
further, he said.
Stocks crept higher after the numbers were released, with the
Dow Jones Industrial Average up 19.78, or 0.15 percent, to
13,006.58. The Standard & Poor's 500 was up 2.94, or 0.21 percent,
to 1,428.29 and the Nasdaq composite index rose 7.58, or 0.30
percent, to 2,536.43.
Six of ten leading indicators rose in April, including stock
prices, interest rate spreads and housing permits. Those increases
more than offset the sharp declines in average weekly hours worked
and consumer spending.
