Leading Economic Indicators Rise for Ninth Straight Month
January 21, 2010 - Rising for the ninth straight month, leading economic indicators rose 1.1% for the month of December. Eight of the ten indicators showed improvements, signaling that this widespread increase is pointing the economy to recovery.
Gains in the leading index were mostly propelled by fewer terminations, building permits and rising stock prices. After climbing 1% in November, December's data was the largest gain in the past three months.
Thursday's indicators report comes amongst the Labor Department's December initial jobless claims data. Quite unexpectedly, claims rose by 36.000 to a seasonally adjusted 482,000, hitting its highest level in nearly two months. Ideally, a fall below 425,000 is what's needed to begin generating net job gains.
The four week average, which can smooth fluctuations in weekly readings, rose for the first time since August. Of all states, California saw the largest rise in initial jobless claims, reaching 16,160 for the month.