An index of leading economic indicators in the United States edged up in May for the second straight month, a business think tank had reported on Thursday.
It follows Wednesday’s statement by Federal Reserve Chairman Ben Bernanke that the US central bank could slow its purchases of government bonds in the coming months and end the injection of money into the economy by mid-2014, if growth and job gains continue.
The global equities sell-off that followed Wednesday’s Fed news continued on Thursday.
In New York, the blue-chip Dow Jones Industrial Average lost 2.3 per cent in its largest loss of the year. The broader Standard and Poor’s 500 Index was off 2.5 per cent, its biggest drop since November 2011.
The New York-based Conference Board’s Leading Economic Index, a compilation of 10 economic indicators of the US economy’s direction for the next three to six months, was up 0.1 per cent to a mark of 95.2, compared to a 2004 benchmark of 100.
Indicators based on stock prices, credit conditions and government bond markets contributed to the rise in the leading indicators. The index was up 0.8 per cent in April, after a 0.3 per cent drop in March.
“Despite month-to-month volatility, the (index’s) six-month growth rate remains steady, suggesting that conditions in the economy remain resilient,” Conference Board economist Ataman Ozyildirim said.
“Widespread gains in the leading indicators over the last six months suggest there is some upside potential for economic activity in the second half of the year.”