A key gauge of future US economic activity crept higher for the fourth straight month in July, suggesting that some improvement may lie ahead for the economy.
The New York-based Conference board said today its Index of leading economic indicators rose 0.3 per cent to 109.9, the same amount it rose in June.
Analysts expected a 0.1 per cent increase. "The signal from the ... index, in terms of its depth and breadth, is that economic conditions, sluggish through the entire first half of the year, could begin to make way for a better economy this fall," said Conference Board economist Mr Kenneth Goldstein.
The markets were higher following the release of the report. In midday trading, the Dow Jones industrial average was up 58 points to 10,298, while the Nasdaq composite index rose 7 points to 1,874.
Consumer spending, which accounts for two-thirds of all economic activity, has managed to hold up well during the economic slowdown and is one of the forces that has prevented the economy from tipping into recession, economists say.
Five of the 10 components of the leading indicators rose last month, the Conference Board said, including money supply, interest rate spread and consumer expectations.
Average weekly initial claims for unemployment insurance and average weekly manufacturing hours also increased. However, stock prices, building permits, and vendor performance decreased.
The Conference Board is a nonprofit research and business group, with more than 2,700 corporate and other members around the world.