Economy5 hours ago (Jan 21, 2022 10:30AM ET)
WASHINGTON (Reuters) – A gauge of future U.S. economic activity increased solidly in December, suggesting the expansion would continue despite challenges from the COVID-19 pandemic and anticipated interest rate increases from the Federal Reserve to tame high inflation.
The Conference Board said on Friday its Leading Economic Index rose 0.8% last month after advancing 0.7% in November. Last month’s increase was in line with economists’ expectations.
“The U.S. LEI ended 2021 on a rising trajectory, suggesting the economy will continue to expand well into the spring,” said Ataman Ozyildirim, senior director of economic research at the Conference Board in Washington.
“For the first quarter, headwinds from the Omicron variant, labor shortages and inflationary pressures, as well as the Fed’s expected interest rate hikes, may moderate economic growth.”
The Conference Board estimated that gross domestic product growth would slow to a 2.2% annualized rate in the first quarter. It is forecasting growth of 3.5% this year.
The government is scheduled to publish its snapshot of fourth-quarter GDP next week.
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.