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ECONOMIC REPORT
Leading index rises 0.1%, suggesting slow growth

By Rex Nutting, MarketWatch
Last Update: 10:00 AM ET Oct 19, 2006


WASHINGTON (MarketWatch) - A gauge of future growth shows the U.S. economy should continue to expand at a slow pace, the Conference Board said Thursday.

The index of leading economic indicators rose 0.1% in September after falling in July and August. The index has dropped in five of the past eight months, and is down 0.9% in the past six months.
Economists expected the leading index to rise 0.3%, according to a survey conducted by MarketWatch.

The leading index fell 0.2% in August and 0.3% in July.
"The behavior of the leading index so far suggests that economic growth should continue at the slow rate in the near term," the New York-based private research group said.

Five of the 10 leading indicators rose in September: Consumer expectations, money supply, stock prices, jobless claims and core capital equipment orders.
Five others fell: Building permits, factory working hours, delivery times, the interest-rate spread and new orders for consumer goods.

In the past six months, 45% of the indicators have been positive.
The coincident index was unchanged in September, with falling industrial production offsetting gains in income, sales and employment.
The lagging index rose 0.2% in September.
Rex Nutting is Washington bureau chief of MarketWatch.

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B04B…
 
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