U.S. Leading Economic Index Grew at a Slower Pace in June -- The Conference Board

An economic index that measures U.S. business cycles continued to rise in June, although it signaled that economic growth eased compared with the previous month, data from The Conference Board showed Thursday.

The Leading Economic index was 115.1 in June, up 0.7% compared with May. The rise is broadly in line with expectations from economists polled by The Wall Street Journal, who expected a 0.8% increase.

In May, the index increased by 1.2% on month compared with a previously estimated 1.3% rise.

June's gain was broad-based and suggests that strong economic growth will continue in the near term, Conference Board Senior Director of Economic Research Ataman Ozyildirim said.

While on-month growth slowed somewhat in June, the index overall upward trend accelerated further in the second quarter, he said.

The Conference Board Leading Economic Index is based on 10 components, among them initial claims for unemployment insurance, manufacturers' new orders, building permits of new private housing units, stock prices and consumers expectations. It is intended to signal swings in the business cycle and to smooth out some of the volatility of individual indicators.

The Conference Board forecasts gross domestic product to grow 6.6% in 2021 and 3.8% in 2022, Mr. Ozyildirim said.

The Coincident Economic Index increased 0.4% in June to 105.5, while the Lagging Economic Index was unchanged at 105.8, the data showed.

Write to Xavier Fontdegloria at xavier.fontdegloria@wsj.com

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  07-22-21 1029ET
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