Suggesting that economic conditions should improve in early 2012, the Conference Board released a report on Thursday showing a continued increase by its leading economic index, although the index increased by less than economists had expected.
The Conference Board said its leading economic index increased by 0.4 percent in December following a revised 0.2 percent increase in November. Economists had expected the index to increase by about 0.7 percent compared to the 0.5 percent increase originally reported for the previous month.
The research group noted that the latest data inaugurates a number of major changes to the components and calculation of the leading economic index.
While the leading economic index increased by less than expected in December, it still marked the third consecutive monthly increase by the index.
Ataman Ozyildirim, an economist at the Conference Board, said, "The gain was widespread among the leading indicators, suggesting economic conditions should improve in early 2012."
The increase by the leading index reflected positive contributions from seven of the ten indicators that make up the index, with the interest rate spread and improving employment indicators providing the largest contributions.
"However, the LEI gain in December was held back by negative contributions from the new Leading Credit Index — which indicates weak credit and financial conditions — and from consumer expectations for business and economic conditions," Ozyildirim added.
The Conference Board also said its coincident economic index, a measure of current economic activity, increased by 0.3 percent in December after edging up by 0.1 percent in November.
The increase reflected positive contributions from all four of the indicators that make up the index, including manufacturing and trade sales and non-farm payrolls.
The lagging economic index also increased by 0.3 percent in December following a 0.4 percent increase in November. Four of the seven components of the index increased during the month.
Ken Goldstein, an economist at the Conference Board, said, "The CEI and other recent data reflect an economy that ended 2011 on a positive note and the LEI provides some reason for cautious optimism in the first half of 2012.
"This somewhat positive outlook for a strengthening domestic economy would seem to be at odds with a global economy that is losing some steam," he added. "Looking ahead, the big question remains whether cooling conditions elsewhere will limit domestic growth or, conversely, growth in the U.S. will lend some economic support to the rest of the globe."
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.