Friday, May 28, 2010

Leading Indicator Falls to 39-Week Low

A measure of future U.S. economic growth fell to a 39-week low in the latest week, pointing to a slowdown in economic growth, The Economic Cycle Research Institute, a New York-based independent forecasting group, says.

As reported by Reuters, the ECRI's "Weekly Leading Index" fell to 125.6 in the week ended May 21, down from a revised 127.2 the previous week, originally reported as 127.3, the lowest level since Aug. 21, 2009, when the index stood at 125.3.

The index's annualized growth rate tumbled to a 47-week low of 5.1 percent from 9.0 percent a week ago. That's the worst level since June 26, 2009, when it stood at 4.6 percent.

'The downturn in WLI growth evident since early 2010 has recently intensified, so it should be no surprise when U.S. economic growth slows noticeably in the months ahead,' says Lakshman Achuthan, managing director of ECRI."

That doesn't necessarily mean we are headed for the dreaded double-dip recession, but it is not good news. Drat.

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