US economic outlook brightens in November
US President George W. Bush delivers a speech standing in front of shelves of food inside the Capital Area Food Bank 19 December 2002 in Washington, DC. The president also bagged food for the needy at the collection drive organized by the USA Freedom Corps that works to engage US federal offices in collecting and delivering food to regional food banks. AFP PHOTO/Paul J. Richards
WASHINGTON (AFP) - The US economic outlook brightened in November for the second month in a row, a closely-watched barometer compiled by the private Conference Board showed Thursday.
Its composite index of leading economic indicators, which aims to predict activity in the coming months, rose 0.7 percent in November, the steepest increase in 11 months. It had edged up 0.1 percent in October.
"Only consumption consistently fueled the recovery throughout 2002," said Conference Board economist Ken Goldstein.
"Meanwhile, the financial market slump seems to be lifting a little this autumn. Recent consumer buying figures have somewhat allayed fears about a weak holiday season and consumer buying attitudes have also improved," he added.
"The most recent indicator readings show that at least some improvement is beginning to develop."
The leading index is based on a basket of 10 indicators such as new building permits, stock market prices and retail sales. Some of the indicators are estimated ahead of the official release.
Five of the indicators improved in November: stock prices, money supply, the interest rate spread, weekly jobless claims and consumer expectations, the Conference Board said.
Four components of the index worsened: vendor performance, building permits, new orders for non defense capital goods and new orders for consumer goods and materials.
Average weekly manufacturing hours were steady.
The coincident index, which tracks current economic activity, edged up 0.1 percent in November, the Conference Board said. The lagging index of past activity declined 0.2 percent.