U.S. Leading Economic Indicators Decline in November
by:Tom Moeller
|in:Economy in Brief
Summary
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Index falls for ninth straight month.
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Coincident indicators rise minimally.
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Lagging indicators edge higher.
The Conference Board's Composite Leading Economic Indicators Index fell 1.0% (-4.5% y/y) during November after a 0.9% October decline, revised from -0.8%. The Action Economics Forecast Survey expected a 0.4% decline in the index for November.
Six of the Leading Index's ten components made negative contributions to the index change in November. Declines came from the average workweek, initial unemployment insurance claims, the ISM new orders index, building permits, consumer expectations for business/economic conditions and the leading credit index.
The Index of Coincident Economic Indicators improved 0.1% last month (1.9% y/y) following an unrevised 0.2% October gain Three of the four index components rose minimally including payroll employment, personal income and business sales. Industrial production declined.
The Index of Lagging Economic Indicators increased 0.2% (6.9% y/y), revised from 0.1%, following no change in October. A rise in banks’ prime rate, a gain in C&I loans and the ratio of consumer credit/income were offset by declines in the average duration of unemployment, the change in unit labor costs and the 6-month change in the services CPI.
The ratio of the Coincident index to the Lagging index also is seen as a leading indicator. The ratio fell slightly last month and has been steadily declining since December of 2021, suggesting rising recession risks.
The Conference Board figures are available in Haver's BCI database; the components are available there, and most are also in USECON. The expectations are in the AS1REPNA database. Visit the Conference Board's site for coverage of leading indicator series from around the world.
Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
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