U.S. Growth Indicators Remain Robust
- The Conference Board’s Leading Economic Index, a key gauge of future economic growth in the United States increased by 0.7 percent in June to 115.1, following a 1.2 percent increase in May and a 1.3 percent increase in April. The reading suggested growth will continue to be robust in the near-term. Additionally, the Federal Reserve Bank of Chicago’s National Activity Index, another growth indicator, was +0.09 in June, down from +0.26 in May. Readings above zero indicate growth.
- The Federal Reserve Bank of Kansas City announced last week that the manufacturing sector in the Midwest remained strong in July. The bank’s month-over-month composite index was +30 in July, up from +27 in June and 26 in May. The growth in manufacturing activity continued to be driven by increased activity at durable goods plants, especially primary and fabricated metals, computer and electronic products, transportation equipment, and furniture manufacturing. Indexes for shipments, new orders, order backlog, and new orders for exports all rose at a faster pace in July while inventories remained positive but eased slightly from last month. Read the full report here.
- According to the U.S. Department of Labor, 419,000 individuals filed for federal unemployment benefits during the week that ended July 17, an increase of 51,000 from the previous week’s level. The four-week moving average was 385,250, an increase of 750 from the previous week’s average. During the week that ended July 10, 3.236 million individuals continued to receive jobless benefits, a decrease of 29,000 from the previous week’s level. Read the full report here.
- In other economic news: Canadian retail sales declined 2.1 percent from April 2021 to May 2021, less than a three percent decline forecast by analysts; the number of new homes under construction in the United States rose 6.3 percent from May 2021 to June 2021 and 29.1 percent from June 2020 to June 2021; and the number of existing homes sold in the United States increased 1.9 percent from May to June and 22.9 percent year-over-year.