Leading economic indicators rise in April

WASHINGTON (MarketWatch)
The U.S. is still expanding and growth could accelerate later in the year, according to an index that measures the nation’s economic health
The leading economic index bounced back with a 0.6% gain to 95.0% in April after falling a downwardly revised 0.2% in March, the Conference Board said Friday
Economists polled by MarketWatch had forecast a 0.3% increase
“In general, the LEI points to a continuing economic expansion with some upside potential,” said Ataman Ozyildirim, economist at The Conference Board
The LEI is a weighted gauge of 10 indicators designed to signal business-cycle peaks and troughs
Seven of the 10 components expanded in April, led by permits to build new homes, the interest-rate spread and initial claims for unemployment benefits
On the downside, consumers were still somewhat pessimistic in April about the direction of the U.S. economy and it remains to be seen whether federal spending cuts under a law known as the sequester start to pinch growth, the Conference Board said
Yet a separate report issued Friday indicated that consumers are starting to feel a little better as the summer approaches
The consumer sentiment survey produced by the University of Michigan jumped to 83.7 in May from 76.4 in April and surpassed Wall Street’s forecast
Other U.S. economic reports in the past week, however, have been a mixed bag, with some signaling slower growth
Most economists expect the U.S. to drop down to a growth rate below 2% in the second quarter after expanding at a 2.5% clip in the first three months of the year