The Conference Board Leading Economic Index? (LEI) for the U.S. Declined in October

BY PR Newswire | ECONOMIC | 11/18/22 10:00 AM EST

NEW YORK, Nov. 18, 2022 /PRNewswire/ -- The Conference Board Leading Economic Index? (LEI)?for the?U.S. decreased by 0.8 percent in October 2022 to 114.9 (2016=100), following a decline of 0.5 percent in September. The LEI is now down 3.2 percent over the six-month period between April and October 2022, a reversal from its 0.5 percent growth over the previous six months.

(PRNewsfoto/The Conference Board)

"The US LEI fell for an eighth consecutive month, suggesting the economy is possibly in a recession," said Ataman Ozyildirim, Senior Director, Economics, at The Conference Board. "The downturn in the LEI reflects consumers' worsening outlook amid high inflation and rising interest rates, as well as declining prospects for housing construction and manufacturing. The Conference Board forecasts real GDP growth will be 1.8 percent year-over-year in 2022, and a recession is likely to start around yearend and last through mid-2023."

The Conference Board Coincident Economic Index? (CEI) for the U.S. increased by 0.2 percent in October 2022 to 109.3 (2016=100), after an increase of 0.1 percent in September. The CEI rose by 1.1 percent over the six-month period from April to October 2022, faster than its growth of 0.9 percent over the previous six-month period.

The Conference Board Lagging Economic Index? (LAG) for the U.S. increased by 0.1 percent in October 2022 to 116.3?(2016 = 100), following a 0.8 percent increase in September. The LAG is up 3.7 percent over the six-month period from April to October 2022, faster than its growth of 3.1 percent over the previous six-month period.?

Summary Table of Composite Economic Indexes





2022




6-month


Aug


Sep


Oct


Apr to Oct



















Leading Index

116.4


115.8

r

114.9

p



? Percent Change

-0.1

r

-0.5

r

-0.8

p

-3.2


? Diffusion

50.0


50.0


35.0


40.0











Coincident Index

109.0

r

109.1

r

109.3

p



? Percent Change

0.4

r

0.1

r

0.2

p

1.1


? Diffusion

75.0


100.0


75.0


100.0











Lagging Index

115.3

r

116.2


116.3

p



? Percent Change

0.6

r

0.8

r

0.1

p

3.7


? Diffusion

71.4


100.0


50.0


100.0











p? Preliminary???? r? Revised









Indexes equal 100 in 2016









Source:? The Conference Board








?

The next release is scheduled for Thursday, December 22, 2022, at 10 A.M. ET.

About The Conference Board Leading Economic Index? (LEI) for the U.S.:?The composite economic indexes are the key elements in an analytic system designed to signal peaks and troughs in the business cycle. The indexes are constructed to summarize and reveal common turning points?in the economy?in a clearer and more convincing manner than any individual component. The CEI is highly correlated with real GDP. The LEI is a predictive variable that anticipates (or "leads") turning points in the business cycle by around 7 months. Shaded areas denote recession periods or economic contractions. The dates above the shaded areas show the chronology of peaks and troughs in the business cycle.

The ten components of The Conference Board Leading Economic Index? for the U.S. include: Average weekly hours in manufacturing; Average weekly initial claims for unemployment insurance; Manufacturers' new orders for consumer goods and materials; ISM? Index of New Orders; Manufacturers' new orders for nondefense capital goods excluding aircraft orders; Building permits for new private housing units; S&P 500? Index of Stock Prices; Leading Credit Index?; Interest rate spread (10-year Treasury bonds less federal funds rate); Average consumer expectations for business conditions.

To access data, please visit: https://data-central.conference-board.org/?

About The Conference Board

The Conference Board is the member-driven think tank that delivers trusted insights for what's ahead. Founded in 1916, we are a non-partisan, not-for-profit entity holding 501 (c) (3) tax-exempt status in the United States. www.conference-board.org ? Learn more about our mission and becoming a member

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SOURCE The Conference Board

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