A closely watched gauge of future US economic activity showed its largest increase since October, a private research firm said today.
The index of leading economic indicators, which foreshadows economic activity in the next three to six months, leaped 0.5 per cent in January, the Conference Board said. The January rise matched Wall Street economists' expectations.
Conference Board economist Mr Ken Goldstein warned that while the data could point to sustained economic growth for the first half of 2004, "the road could get bumpy."
"Consumer confidence could falter if job and wage growth don't continue to strengthen. Business confidence could erode. The lack of pricing power could be a big problem. But although these risks are important, their probabilities are not very high," Mr Goldstein said.