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Last Update: 18-Aug-11 11:01 ET
Leading Indicators Gain Strength Amid Struggling Recovery
The Conference Board's Leading Economic Indicators Index increased 0.5% in July, up from 0.3% in June. The Briefing.com consensus expected the index to increase 0.2%.
Since 7 of the 10 components are known prior to the release, the differences between the consensus and actual data normally come from the three estimated components: manufacturer orders, consumer goods; manufacturer orders, business capital; and M2 money supply.
In this case, the Leading Indicators Index spiked on extremely high growth in M2. This sub-index accounted for 0.71 percentage points of growth in July, the largest contribution since September 2010. M2 has only averaged a 0.08 percentage point contribution since the end of the recession.
