Business News Asia
The Conference Board announced that its Leading Economic Index (LEI) fell 1.0% in December, following a 1.1% decline in November, marking the 10th straight month of declines. Analysts had expected the index to fall by just 0.7% in December.
The Conference Board stated that the continued decline of the LEI index signals a potential recession, as it is affected by weak trends in the manufacturing sector and the labor market. The LEI index is considered an indicator of the state of the US economy, and is based on 10 economic figures including stock prices, new manufacturing orders, housing permits, jobless claims numbers, and consumer confidence.
The organization also noted that the US economy has been affected by supply chain disruptions, lack of consumer spending and rising Covid-19 cases. The result of which is a decline in the index. The situation has become critical, and the economy needs a comprehensive approach to recover from this situation.