AlQa'dah 13, 1434, Sep 19, 2013, SPA -- A closely watched index of future U.S. economic activity rose more than expected in August as the economy moved past higher interest rates and the lingering impact of pension-tax increases and government spending cuts that were expected to limit U.S. growth and hiring, a private-sector research organization reported Thursday. The Conference Board said its leading economic index (LEI)-designed to forecast economic activity in the coming three to six months-increased 0.7 percent to 96.6 last month, following a 0.5 percent gain in July. The gain in the August leading indicators was driven by strength in the labor market and financial sectors as well as by rising manufacturing orders. There was weakness in residential construction and consumer expectations. Two Conference Board economists said the solid gains in August and July were a good sign following an earlier slowdown. "If the LEI's six-month growth rate, which has nearly doubled, continues in the coming months, economic growth should gradually strengthen through the end of the year," Ataman Ozyildirim said in a statement. "The latest reading points to more [strength] in the pace of economic activity in the near term," Ken Goldstein said in a statement. "One unknown is how resilient [consumer and business] confidence will remain ..., given the mixed signals from the housing and labor markets." Goldstein said another unknown is how confidence will be affected by the upcoming debates in Washington over approving a federal budget to avoid a government shutdown and raising the debt limit to avoid an unprecedented default on the government's debt.
