A private index of US leading economic indicators
surged in December, raising prospects for continued growth in the
first half of 2013.
The index rose 0.5 points to 93.9, based on a 2004 base of 100,
the New York-based Conference Board business think tank reported
Thursday.
"The latest data suggest that a pickup in domestic growth is now
more likely, compared to a few months ago," Conference Board
economist Ken Goldstein said.
The Conference Board said that the index "rose sharply" last
month, based on a large decline in newly jobless workers registering
for unemployment benefits. A loosening credit market also provided a
boost.
Weak consumer expectations and new orders for manufactured goods
continue to weigh on the leading indicators.
The index, which compiles 10 measures that tend to show the
direction of the US economy for the next three to six months, was
unchanged in November and rose 0.3 points in October, based on
year-end revisions.
"Housing, which has long been a drag, has turned into a positive
for growth, and will help improve consumer balance sheets and
strengthen consumption," Goldstein said. "However, for growth to gain
more traction, we also need to see better performance on new orders
and an acceleration in capital spending."
The International Monetary Fund issued a projection Wednesday for
2-per-cent growth this year in the United States and an acceleration
to 3 per cent in 2014. The forecast puts US growth well ahead of
other rich economies, such as those in Europe and Japan.
