Business News Asia
The Conference Board’s Leading Economic Index (LEI) fell 0.3% in April after rising 0.1% in March.
The LEI index is an indicator of the U.S. economy. It is calculated from 10 economic data items, including stock prices, new orders in the manufacturing sector, housing permits, applications for unemployment benefits and consumer confidence.
The Conference Board also lowered its forecast for US economic growth this year to 2.3%, due to rising inflation. This is due to rising prices for energy, food and metals as a result of the war in Ukraine. Added to this are the Federal Reserve’s (Fed) interest rate hike and the labor shortage.
The Fed’s Philadelphia manufacturing index fell to 2.6 in May, its lowest level in two years, from 17.6 in April.
The index for the manufacturing sector was impacted by the decline in employment. The business outlook index for the next six months is the lowest in more than 13 years.
However, the index remains above 0, indicating that manufacturing in the Mid-Atlantic region continues to expand.