Conference Board sounds note of caution on US leading economic indicators in February

Leading indicators for the US economy continued to point towards robust economic growth over the remainder of 2018, according to the Conference Board, despite recent volatility in the stock market.

But there was a caveat.

The research institute's index of leading economic indicators jumped by 0.6% month-on-month in February to reach 108.7.

That was in comparison to economists' forecasts calling for a reading of 0.3%.

"The LEI points to robust economic growth throughout 2018. Its six-month growth rate has not been this high since the first quarter of 2011. While the Federal Reserve is on track to continue raising its benchmark rate for the rest of the year, the recent weakness in residential construction and stock prices – important leading indicators - should be monitored closely," said Ataman Ozyildirim, Director of Business Cycles and Growth Research at the Conference Board.

In parallel, the index of coincident economic indicators rose by 0.3% over the month to 103.3, while the index of lagging indicators increased by 0.4%.