The report on Leading Economic Indicators was one of the key tools for Alan Greenspan, and while it’s a combination of past economic news, the combined data portends the near-term direction for the overall economy.

The ten components of The Conference Board Leading Economic Index® for the U.S. include:

• Average weekly hours, manufacturing
• Average weekly initial claims for unemployment insurance
• Manufacturers' new orders, consumer goods, and materials
• ISM® Index of New Orders
• Manufacturers' new orders, nondefense capital goods excluding aircraft orders
• Building permits, new private housing units
• Stock prices, 500 common stocks
• Leading Credit Index™
• Interest rate spread, 10-year Treasury bonds less federal funds
• Average consumer expectations for business conditions

Statement:

Ataman Ozyildirim, director of business cycles and growth research at the Conference Board, said November’s gain signals that solid economic growth could continue into the first half of 2018.

“In recent months, unemployment insurance claims have returned to pre-hurricane levels,” he said. “In addition, improving financial indicators, new orders in manufacturing and historically high consumer sentiment have propelled the U.S. LEI even higher.”

There was also strong data from the Philadelphia Fed Manufacturing report, which came in significantly above consensus at 26.2.

The economy is plowing full steam ahead and soon the big problem will be concerned about overheating.  I hope the powers that be don’t attempt to nip this economy in the bud as its only just beginning to bloom.