A key gauge of future economic strength rose in
January for the fourth straight month as inflation remained modest,
according to both private and government reports issued Friday.
The New York-based Conference Board, a private business think
tank, said that its index of leading indicators rose 0.4 points in
January to 94.9, after increasing 0.5 points in December.
The gain "reflected fairly widespread strength among its
components, pointing to somewhat more positive economic conditions in
early 2012," Conference Board economist Ataman Ozyildirim said.
The improvement reflected strengthening manufacturing along with
improving financial and credit conditions, even as consumer outlook
remained pessimistic.
The index is compiled from indicators that tend to predict the
direction of the economy three to six months into the future. The
Conference Board said that economic growth could accelerate in the
spring and summer.
The US economic expansion slowed last year to 1.7 percent from 3
percent in 2010, though fourth-quarter growth was estimated at an
annualized 2.8 percent.
The consumer price index rose 0.2 per cent last month in the
United States, according to the monthly survey by the Bureau of
Labour Statistics said.
Inflation was up 2.9 percent for the 12 months ending in January.
So-called core inflation, excluding volatile food and energy
prices, was up 0.2 percent in January, with the 12-month core rate
at 2.3 percent.
The increase in prices was below Wall Street expectations,
according to a Bloomberg News survey of 82 economists. The average
January inflation forecast had been 0.3 percent, within a range of
predictions for increases of 0.1 percent to 0.4 percent.
The Federal Reserve announced last month that it would keep its
benchmark interest rate at "exceptionally low," near-zero levels
through 2014, amid modest US economic growth and serious risks to the
global economy coming from Europe.
Fed chief Ben Bernanke said last week that the central bank
foresees continued "subdued" inflation. Low inflation reduces
pressure for the Fed to tighten its monetary policy.
Food prices rose 0.2 percent in January, pushed by higher
restaurant prices even as grocery costs were unchanged. Dairy and
meat products were higher, while fresh fruit and vegetables and
cereals and baked goods were lower. The 12-month food inflation rate
was 4.4 percent.
Energy prices rose 0.2 per cent in January, with rising gasoline and
fuel oil prices offset by a 2.9 percent drop in natural gas prices.
The 12-month inflation rate for energy prices was 6.1 percent.
Housing costs rose last month at close to the overall consumer
price index.
