A leading indicator of the British economy increased for the third straight month in April, suggesting that the the improvement in economic growth so far this year may be sustainable, data released by research firm Conference Board showed Friday.
The leading economic index increased 0.2 percent on a monthly basis to 103.6 in April. This followed a 0.4 percent growth in March and a 0.6 percent gain in February. Four of the seven components made positive contributions to the headline index, the survey showed.
Meanwhile, the coincident economic index, a measure of the current economic activity, stayed unchanged at 104.3 in May, after rising 0.2 percent in each in the previous two months.
During the six months ended April, the leading index recorded a 1.3 percent increase, and the coincident index logged a 0.3 percent gain, data showed.
According to Brian Schaitkin, Economist for Europe with The Conference Board, domestic sources, especially improved business confidence, have been the primary drivers of the turnaround in May.
"However, a slowing global economy and continued economic weakness in the Euro Area are important constraints that could negatively impact a recovery," Brian added.
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