USA, leading indicator worsens in April

USA leading indicator worsens in April

(Finance) – The US super index worsened in April summarizes American economic conditions. According to what was communicated by the Conference Board of the United States, the LLeading Indicator (LEI) it stands at 101.8 points, down by 0.6% compared to the previous month, when a contraction of 0.3% was recorded, and above the -0.3% expected by analysts.

The component that concerns the current situation rose by 0.2% to 112.3 points, while the component on future expectations it grew by 0.1% to 119.5 points.

“Another drop in the US LEI confirms that more cautious economic conditions are ahead,” said Justyna Zabinska-La Monica, Senior Manager, Business Cycle Indicators, at the Conference Board. “The worsening consumer outlook on business conditions, the Weakening new orders, a negative yield spread and a decline in new construction permits fueled the index’s decline in April, the expert explained. Additionally, for the first time since October last year, stock prices have contributed negatively. Although the semi-annual and annual growth rates of the LEI no longer signal an imminent recession, they nevertheless indicate serious obstacles to future growth of households and the depletion of pandemic-related savings will continue to weigh on the U.S. economy in 2024. As a result, we expect real GDP growth to slow below 1% in the second to third quarter of 2024.”

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