The U.S. Leading Economic Index has indicated towards economic growth consistently in recent months, with April recording its eighth straight monthly gain. At present, the measure is at its highest point of the series, buoyed by constant gains in stock market and persistently low jobless claims. The interest rate spread has also been a constant source of strength, most recently accounting for half of April’s monthly rise of 0..32 percent.
The ISM new orders have also risen the leading index in 2017, a trend that is expected to continue in May as the measure has kept much of its recent strength. Jobless claims continue to be close to their lowest levels in over 40 years and average weekly claims dropped even further in May, implying that this component would probably stimulate the index in May as well. According to a Wells Fargo research report, the index is likely to have risen to 0.4 percent in May.
The material has been provided by InstaForex Company – www.instaforex.com
Source: Forex News